U.S. Legislator Proposes Reducing SEC Chair’s Salary to $1
A U.S. legislator, Representative Tim Burchett, has introduced an amendment to the Financial Services and General Government (FSGG) bill, suggesting a reduction of Securities and Exchange Commission (SEC) Chair Gary Gensler’s annual salary to just one dollar. This proposal aligns with a broader effort to defund the regulator. The FSGG bill, which aims to cut federal spending, was introduced on July 13. Gensler currently earns over $300,000 per year for his role at the SEC, making him a target in this push for fiscal prudence.
Burchett is not alone in advocating for reduced SEC funding; the overarching bill also proposes significant funding reductions for various government agencies. Representative Steve Womack presented the bill to the House Rules Committee and highlighted the SEC as an example of regulatory overreach. He argued that defunding could rein in the agency’s “intrusiveness” and refocus it on its original mission.
More Officials Criticize SEC and Gary Gensler
This is not the first time U.S. politicians have criticized Gary Gensler and the SEC. Representatives Warren Davidson and Tom Emmer introduced the SEC Stabilization Act on June 12, which called for Gensler’s removal as chair. The bill proposed redistributing power within the SEC, creating an executive director role, and adding a sixth commissioner to prevent dominance by a single political party.
Gensler has faced ongoing criticism from Davidson, who labeled his approach to the cryptocurrency sector as “arbitrary and capricious” and publicly advocated for his dismissal using #FireGaryGensler. In October, Gensler expressed skepticism about whether crypto service providers comply with financial regulations in the largest capital market. He also suggested that most crypto assets meet the investment contract test and are therefore securities.
Hot Take: Pushback against SEC Chair Gensler Grows
The proposal to reduce SEC Chair Gary Gensler’s salary to $1 reflects a broader effort to defund the regulator and rein in what some lawmakers see as regulatory overreach. Representative Tim Burchett’s amendment to the Financial Services and General Government bill has garnered support from those advocating for fiscal prudence. This is not an isolated incident, as other legislators have also criticized Gensler and proposed changes within the SEC to redistribute power and prevent dominance by a single political party. The ongoing debate highlights the tension between regulation and innovation in the cryptocurrency industry, with Gensler continuing to express skepticism about the sector’s adherence to financial regulations. As the pushback against Gensler grows, it remains to be seen how these conflicts will impact the future of cryptocurrency regulation in the United States.
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