The Chair of the US Securities and Exchange Commission (SEC), Gary Gensler, has received a warning from the US House Committee on Oversight and Accountability. In a letter addressed to Gensler, Chairman James Comer emphasized the importance of Gensler’s full cooperation. The committee stated that it would resort to disciplinary action if Gensler did not comply. Comer stated, “I expect nothing less than full cooperation with our inquiry, which begins with SEC providing documents actually responsive to our requests.”
“I expect nothing less than full cooperation with our inquiry, which begins with SEC providing documents actually responsive to our requests.” – James Comer, Chairman of the Committee on Oversight and Accountability
The committee’s main concern is Gensler’s failure to disclose certain documents related to the SEC’s involvement in the development of European social engineering initiatives. Comer referred to these initiatives as “disguised” disclosure and due diligence directives created by the European Union (EU). Accusing Gensler of neglecting his obligation to collaborate with Congressional Committees, Comer stated that Gensler has been obstructing congressional oversight.
“I do think that if this continues to grow – and it’s grown about tenfold in the last year – it can present those systemic wide risks.” – Gary Gensler, Chair of the US Securities and Exchange Commission
The SEC has been requested to provide the necessary information for almost four months. Comer alleged that the SEC has consistently delayed the process, leading to mounting frustration. This frustration has intensified given Gensler’s recent focus on the stablecoin market and the collapse of the cryptocurrency exchange FTX.
Gensler’s remarks to Congress in October 2021 shed light on his concerns regarding the growing stablecoin market and the associated systemic risks. He expressed his skepticism by stating, “I do think that if this continues to grow – and it’s grown about tenfold in the last year – it can present those systemic wide risks.”
Following the collapse of FTX, critics, including US Representative Ritchie Torres, held Gensler responsible for the catastrophe and accused him of negligence. This marked a turning point for Gensler, as he adopted a more assertive stance on cryptocurrency. Taking legal action against FTX and initiating lawsuits against major industry players, such as Binance and Coinbase, showcased Gensler’s determination to enforce regulations in the crypto space.
While Gensler’s approach to crypto regulation has garnered significant attention, it is important to note his efforts in introducing new rules to the traditional finance sector. According to the Committee on Capital Markets Regulation, Gensler has proposed more new rules than any of his predecessors since the aftermath of the 2008 financial crisis.
The US House Committee on Oversight and Accountability has issued a warning to SEC Chair Gary Gensler, urging him to fully cooperate with their inquiry. The committee highlighted Gensler’s failure to disclose documents related to the SEC’s involvement in European social engineering initiatives. Gensler’s skepticism towards cryptocurrencies and his intensified crackdown following the FTX collapse have drawn criticism from lawmakers. However, Gensler’s determination to enforce regulations is not limited to the crypto space, as he has also introduced numerous new rules to the traditional finance sector.
