It is worth mentioning that this is not the first time the SEC and Chair Gensler have faced scrutiny from US politicians.
In a surprising turn of events, United States Representative Tim Burchett has proposed an amendment that seeks to drastically reduce the salary of the Securities and Exchange Commission (SEC) Chair, Gary Gensler, to a mere $1 per year. This bold move is part of a broader effort to defund the SEC, as outlined in the Financial Services and General Government (FSGG) bill.
Understanding the Proposed Amendment
As it stands, Gary Gensler is estimated to earn about $300,000 per year for his responsibilities at the helm of the SEC. The proposed amendment by Rep. Burchett, however, is aimed at bringing down this annual compensation to just $1, signaling a significant reduction in the head of the SEC’s salary. This move has been met with a mixture of surprise, support, and criticism.
The FSGG bill, where this amendment was introduced, is a comprehensive piece of legislation designed to cut government spending across multiple agencies. While the SEC’s funding is a specific focus, the bill also targets various other government agencies that are perceived to have become bloated and excessively burdensome on the federal budget.
Womack argued that the SEC, along with other agencies, had strayed from their primary mandates, causing a disservice to the American people. His proposal suggests that defunding the SEC could help limit the regulator’s intrusiveness and steer it back toward its core mission.
“Specifically, we turn off rulemakings at the Securities and Exchange Commission that lack proper cost-benefit analysis and aggregate impact analysis.”
The proposed changes are aimed at fostering more responsible and accountable regulation while ensuring government resources are directed to agencies that prioritize their core objectives.
Ongoing Controversy Involving SEC Chair
It is worth mentioning that this is not the first time the SEC and Chair Gensler have faced scrutiny from US politicians. On June 12, United States Representatives Warren Davidson and Tom Emmer introduced the SEC Stabilization Act, a bill aimed at removing Gensler from his position as the SEC Chair.
The bill proposed redistributing the power within the agency by creating an executive director position and adding a sixth commissioner, ensuring no one political party holds a majority sway.
Davidson and Emmer have been vocal critics of Gensler’s leadership, accusing him of being a “bad faith regulator” and expressing concern about his handling of the crypto industry. They claim that Gensler has disproportionately targeted the crypto community with enforcement actions while failing to address more significant issues within the financial sector.
Additionally, Gensler was reportedly asked to appear before Congress for allegedly promoting Algorand (ALGO) despite his hard-boiled stance against crypto assets. In light of the video footage showing Gensler promoting ALGO and later referring to it as a security, critics label the SEC Chair a hypocrite.