US Lawmakers Accuse Gary Gensler of ‘Hypocritical Mismanagement of SEC’ — Say the Chairman ‘Refuses to Practice What He Preaches’

Four congressmen have accused the U.S. Securities and Exchange Commission (SEC) underneath Chairman Gary Gensler of “regulatory hypocrisy and inconsistency.” They added: “While the SEC is failing to comply with federal transparency and record-keeping laws, the SEC is aggressively enforcing record-keeping laws on private businesses.”

Gensler’s Regime at SEC ‘Has Been Characterized by Regulatory Hypocrisy and Inconsistency’

Four lawmakers despatched a letter to the chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, on Tuesday “denouncing the Biden administration’s inconsistency and hypocrisy of enforcing record-keeping laws, this time at the SEC.”

The letter was signed by U.S. Representatives Tom Emmer (R-MN), Patrick McHenry (R-NC), Jim Jordan (R-OH), and James Comer (R-KY). They wrote:

Recent studies counsel that SEC officers are utilizing ‘off-channel’ communications platforms, comparable to Signal, Whatsapp, Teams, and Zoom, for official enterprise and with out producing these data in response to open-record requests.

The letter particulars that in 2013 whereas Gensler served as chairman of the Commodity Futures Trading Commission (CFTC), the company’s Office of Inspector General (OIG) found that he used a private e mail account to conduct official enterprise.

“During an investigation into your handling of the collapse of MF Global Holdings, the OIG found that you used your personal email 7,005 times to conduct official business related to that matter alone. Your defense to violating federal record-keeping requirements was that you apparently ‘did not know how to access [your] official email at home,’” the letter explains.

“While the SEC is failing to comply with federal transparency and record-keeping laws, the SEC is aggressively enforcing record-keeping laws on private businesses,” the lawmakers continued. “The SEC recently charged 16 firms more than $1.1 billion combined for allegedly failing to maintain and preserve electronic communications.”

Congressman Emmer burdened:

Chair Gensler’s regime on the SEC has been characterised by regulatory hypocrisy and inconsistency. Unacceptable that Gary Gensler doesn’t maintain himself to the identical transparency requirements that he locations on the non-public sector.

“It is inappropriate for SEC to target the private sector for failing to comply with record-keeping laws when the SEC itself is in violation of similar transparency laws,” Emmer stated. “The American people deserve transparency from their regulators, but time and time again, Chair Gensler refuses to practice what he preaches.”

Congressman Comer opined: “It appears the Biden administration has rules for thee but not the SEC … This type of government hypocrisy undermines Americans’ trust in our institutions and fails to deliver the transparency they deserve. Chair Gensler must provide answers to Congress and the American people.”

Congressman McHenry described:

This is yet one more instance of Chair Gensler’s hypocritical mismanagement of the SEC. Chair Gensler is aggressively pursuing enforcement actions towards corporations who use off-channel communications whereas on the identical time reportedly failing to adjust to federal record-keeping legal guidelines.

Emphasizing that “The SEC must practice the transparency and accountability it preaches,” the lawmakers ended their letter with 5 questions they need Gensler to offer solutions to no later than Nov. 15.

For instance, they requested him to certify that the SEC is following all relevant federal record-keeping and transparency necessities and that he has by no means used a non-public e mail account or off-channel communications for official SEC enterprise. Another query asks him to elucidate whether or not any SEC staff have used off-channel communications to conduct official SEC enterprise and if that’s the case, present an inventory of all such platforms and all SEC staff who’ve used off-channel communications for official enterprise.

Do you suppose SEC Chair Gary Gensler has mismanaged the SEC as alleged by the lawmakers? Let us know within the feedback part under.