The United States financial regulator Securities and Exchange Commission (SEC) has been in a tussle with the crypto industry and lawmakers are taking note of it. This year there were several bills reportedly introduced by U.S. lawmakers to tame the SEC. SEC chair Gary Gensler was also called out and now he may face actions as lawmakers plan to reduce his payscale to $1.
In a bold and unconventional step, U.S. Congressman Rep. Tim Burchett has introduced a controversial suggestion to slash the annual salary of Gary Gensler, the Chair of the Securities and Exchange Commission (SEC), to a symbolic $1. This audacious proposal forms a central component of a broader campaign to cut funding to the SEC, as part of a sweeping endeavor to overhaul government expenditure.
Although this action isn’t the inaugural endeavor to curtail Gensler’s authority, it highlights an increasingly prevalent sentiment within the American political arena.
In July this year, Rep. Burchett presented this proposition as an amendment to the Financial Services and General Government (FSGG) bill. It was part of a larger effort to rein in government spending across various sectors.
Back in June, U.S. Representatives Warren Davidson and Tom Emmer took action by introducing the SEC Stabilization Act to the House of Representatives. This significant legislation primarily aimed to unseat Gary Gensler from his position as the SEC chair.
If this act gains approval, it would result in Gensler’s ousting, a realignment of authority within the agency, the establishment of an executive director role, and the inclusion of a sixth commissioner at the SEC, ensuring that no single political party exerts overwhelming influence.
Davidson and Emmer have consistently voiced their dissent regarding Gensler’s stewardship of the SEC. Emmer, in particular, has been outspoken, accusing him of disproportionately targeting the cryptocurrency community with enforcement measures while neglecting more pressing concerns.
Rep. Steve Womack, who presented the bill for reduced funding to the House Rules Committee on November 6, contended that agencies like the SEC have overstepped their regulatory boundaries, evolving into a fiscal burden on the government. He advocates for defunding the SEC as the most practical strategy to curtail its regulatory “intrusiveness” and steer the regulator back towards its primary mission.
While these attempts to curtail the SEC’s influence may face considerable challenges, they reflect a growing debate surrounding the agency’s actions and the role of regulatory bodies in the United States.
Whether or not Gensler’s salary is ultimately reduced to $1, the ongoing discussions and proposals underscore the complexity of regulatory reform and the growing concerns about the reach of government agencies in the financial and crypto sectors.
The outcome of these initiatives will undoubtedly shape the regulatory landscape in the United States in the years to come.
