US House Committee Warns SEC Chair Gary Gensler to Cooperate or Face Consequences
The US House Committee on Oversight and Accountability has issued a warning to Gary Gensler, Chair of the US Securities and Exchange Commission (SEC), urging him to cooperate with their inquiries or face disciplinary action. In a letter addressed to Gensler, James Comer, Chairman of the Committee on Oversight and Accountability, stressed the importance of Gensler’s full cooperation. The committee stated that they would consider using compulsory measures if Gensler did not comply. Comer emphasized that he expected complete cooperation from the SEC in providing the requested documents.
Gensler Accused of Withholding Documents Related to SEC
The committee expressed concern over Gensler’s failure to disclose certain documents related to the SEC’s involvement in European social engineering initiatives. These initiatives, according to Comer, were disguised as disclosure and due diligence directives by the European Union (EU). Comer accused Gensler of neglecting his obligation to collaborate with Congressional Committees and claimed that he had obstructed congressional oversight. The committee has been waiting for nearly four months for the SEC to provide the requested information, leading to growing frustration.
Gensler’s Shift in Approach After Becoming SEC Chair
Since assuming the position of Chair at the SEC, Gary Gensler has taken a more skeptical stance towards cryptocurrencies. He raised concerns about the growing stablecoin market and highlighted the associated systemic risks during a testimony before Congress in October 2021. Gensler’s scrutiny increased following the collapse of cryptocurrency exchange FTX, which led to allegations of negligence against him and the SEC. Lawmakers, including US Representative Ritchie Torres, held Gensler solely responsible for the FTX collapse.
SEC’s Legal Actions and Regulatory Proposals
Gensler responded to the FTX collapse by initiating lawsuits against major industry players such as Binance and Coinbase. It is important to note that Gensler’s approach to crypto regulation has garnered attention, but he has also been active in introducing new rules and regulatory proposals in the traditional finance sector. According to the Committee on Capital Markets Regulation, Gensler has introduced more new rules and proposals to the financial sector than any of his predecessors since the 2008 financial crisis.
Hot Take: US House Committee Warns SEC Chair Gary Gensler Over Lack of Cooperation
The US House Committee on Oversight and Accountability has sent a warning to SEC Chair Gary Gensler, urging him to fully cooperate with their inquiries or face disciplinary action. The committee expressed frustration over Gensler’s failure to disclose certain documents related to the SEC’s involvement in European social engineering initiatives. They accused him of obstructing congressional oversight and neglecting his collaboration obligations. Since becoming SEC Chair, Gensler has taken a more skeptical stance towards cryptocurrencies and faced criticism for his handling of the FTX collapse. Despite this, he has also been active in introducing new rules and proposals in the traditional finance sector.
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