Gary Gensler, chair of the Securities and Exchange Commission, is under fire for his staff hiring choices at the regulatory agency.
Republican lawmakers have opened an investigation into hiring decisions at the U.S. SEC under chair Gary Gensler, following accusations that political leanings impacted recruitment.
A letter signed by Republican lawmakers Patrick McHenry, James Comer, and Jim Jordan stated that the Committees on Judiciary, Financial Services, and Oversight and Accountability had begun the inquiry under the Civil Service Reform Act of 1978.
Recently, the Committees learned that the SEC may be hiring civil service employees based on their political affiliations. We write to request relevant documents and information regarding these allegations.
Letter notifying SEC on hiring investigation
The trio of U.S. Representatives requested documents relating to SEC applicant consideration, employment, termination, and staff transfers. According to the letter, the SEC has until 5 p.m. ET on Sept. 24 to comply.
SEC under heat as crypto fine skyrocket
The document signaled another blow against Gensler during his time as SEC chair. Digital asset industry stakeholders and pro-crypto legislators have also accused Gensler of ambiguous practices.
According to the web3 community, Gensler and the SEC have adopted an enforcement-first approach to regulation. Some have even argued that the agency lacks constitutional authority to oversee crypto. Eric Turner, Ryan Selkis’ successor at Messari, criticized the regulator over its $1.5 million settlement with eToro.
— Dave W (@daveweisberger1) September 12, 2024Chair Gensler publicly stated NEW rules were needed for digital assets, but, later switched his position to the LIE that existing rules would be workable.
Since then, he's spent most agency resources fighting for jurisdiction, rather than protecting investors.
Crypto regulations have become a recurring focus in Washington and U.S. jurisdictions. A bipartisan bill known as the Financial Innovation and Technology for the 21st Century Act was passed in the House of Representatives, despite opposition from the White House.
If passed by the U.S. Senate, the Commodity Futures Trading Commission would assume a large portion of crypto oversight. FIT 21 places digital asset exchanges like Binance and Coinbase under the CFTC’s purview.