A U.S. legislator has proposed reducing SEC Chair Gary Gensler’s annual salary to just $1. The initiative is an integral part of the Financial Services and General Government bill. This bill seeks substantial budget cuts for the SEC and various government entities.
Furthermore, representative Tim Burchett, a member of the United States Congress, has introduced an amendment to the Financial Services and General Government (FSGG) legislation. Within this proposed amendment, Burchett strongly advocates for a noteworthy salary reduction for Mr. Gensler, the chair of the regulatory body.
This reduction would set Mr. Gensler’s salary at a symbolic $1. Importantly, this action is part of a more comprehensive effort to decrease financial support for the regulatory body.
U.S. Legislators Seek SEC Budget Cuts, Including Gary Gensler’s Salary
Originally introduced on July 13 this year, the FSGG bill is a comprehensive legislative measure designed to significantly curtail government expenditure across the spectrum. It is approximated that Mr. Gensler’s compensation currently exceeds $300,000 per annum for his role as the head of the SEC.
Rep. Burchett is not the sole legislator targeting the SEC. The overarching legislation seeks to considerably reduce funding for numerous governmental bodies.
On November 6, when presenting the bill to the House Rules Committee, Representative Steve Womack made a compelling statement. He articulated that the SEC, along with several other agencies, had been adversely impacted by excessive regulatory interventions. These interventions had imposed an undue financial burden on the government.
Womack emphasized a key point in his argument. He suggested that the wisest approach would involve reducing the SEC’s funding. This reduction would help alleviate the regulator’s perceived “intrusiveness” in the financial landscape. Additionally, it would serve as a means to prompt the regulator to realign its focus with its core mission.
“In particular, we will terminate the rulemaking initiatives at the Securities and Exchange Commission that lack a comprehensive cost-benefit analysis and aggregate impact assessment.”
“To clarify, the entities within our jurisdiction execute vital functions; however, many of them have deviated from their prescribed mandates, resulting in a disservice to the American populace,”
This episode is not the inaugural instance where Mr. Gensler and his agency have encountered scrutiny from U.S. lawmakers.
Proposed Changes to SEC Leadership and Structure by Davidson and Emmer
On June 12, United States Representatives Warren Davidson and Tom Emmer presented the SEC Stabilization Act in the House of Representatives. A key provision of this legislation aims to remove Mr. Gary Gensler from his post as the SEC chair.
If this bill is approved, it will result in several significant changes. Firstly, it will lead to the removal of Mr. Gensler from his position. Secondly, it will trigger a restructuring of the agency’s power structure. This restructuring will involve the redistribution of authority between the SEC chair and the commissioners.
Additionally, the bill will establish a new role of an executive director. Moreover, it will increase the number of commissioners from the current count to six. This change is designed to prevent any single political party from exerting an overarching influence on the agency’s decisions and actions.
Davidson and Emmer have consistently expressed their disapproval of Mr. Gensler’s leadership at the SEC. Emmer, in particular, has gone so far as to characterize him as a “regulator acting in bad faith.” He accuses Mr. Gensler of enforcing actions within the cryptocurrency community indiscriminately.
Emmer’s contention is that this approach overlooks the truly malevolent actors in the industry.