Top GOP lawmakers scrutinize SEC’s Gensler on hiring

Securities and Exchange Commission Chairman Gary Gensler is facing criticism for his hiring choices at the regulatory agency.

Republican lawmakers have launched an investigation into hiring decisions at the U.S. Securities and Exchange Commission, chaired by Gary Gensler, following accusations that political leanings influenced hiring.

A letter signed by Republican lawmakers Patrick McHenry, James Comer and Jim Jordan said the Judiciary, Financial Services and Oversight and Accountability Committees began the investigation under the Civil Service Reform Act of 1978.

Recently, the Committees learned that the SEC may hire public service employees because of their political affiliations. We write to request relevant documents and information regarding these allegations.

Letter notifying the SEC of a recruiting investigation

The trio of U.S. Representatives requested documents related to the SEC’s evaluation of filings, employment, terminations and personnel transfers. The SEC has until 5 p.m. ET on September 24 to comply, according to the letter.

Top GOP lawmakers investigate Gensler’s hiring at SEC | Source: X SEC under pressure as crypto fines skyrocket

The filing signals another blow to Gensler’s tenure as SEC chairman, with digital asset industry stakeholders and pro-crypto lawmakers also accusing Gensler of shady practices.

According to the Web3 community, Gensler and the SEC have taken an enforcement-focused approach to regulation, with some even arguing that the agency lacks constitutional authority to oversee crypto. Ryan Selkis’ successor at Messari, Eric Turner, criticized the regulator for its $1.5 million settlement with eToro.

Chairman Gensler publicly stated that NEW rules were needed for digital assets, but then LIED that the current rules would be enforceable.

Since then, instead of protecting investors, the agency has spent most of its resources fighting for jurisdiction.

— Dave W (@daveweisberger1) September 12, 2024

Crypto regulation has become a recurring focus in Washington and other U.S. jurisdictions. A bipartisan bill known as the Financial Innovation and Technology for the 21st Century Act has passed 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 would bring digital asset exchanges like Binance and Coinbase under the CFTC’s jurisdiction.