Originally published on: September 12, 2024
In a recent development, United States House Republicans have raised concerns about Securities and Exchange Commission Chair Gary Gensler allegedly making hiring decisions based on political affiliation, which could potentially be a violation of federal law.
A group of Republican lawmakers, including Jim Jordan, Patrick McHenry, and James Comer, penned a letter to Gensler, a Democrat, questioning the SEC’s recruitment practices. They claim that the agency has been appointing individuals from left-leaning organizations to senior roles at the SEC.
The lawmakers cited email correspondence that suggests Gensler may have hired the agency’s director of trading and markets, Dr. Haoxiang Zhu, based on his political beliefs. According to the letter, Zhu mentioned in May 2021 emails that he aligned with Gensler politically, and he was hired six months later in November.
The letter accuses the SEC of potentially breaking the law by taking into consideration an applicant’s political ideology during the hiring process. The lawmakers argue that such practices undermine the SEC’s impartiality.
Gensler has been requested to provide all relevant documents and communications regarding the agency’s staffing decisions since April 17, 2021. He must also disclose any details about how political affiliations or ideologies of applicants were evaluated during the hiring process.
The SEC chair has until September 24 to furnish the requested information to the House Judiciary Committee. Gensler’s tenure as SEC Chair has been characterized by a significant increase in enforcement actions against crypto firms, with a notable surge in 2023.
With former President Donald Trump vowing to replace Gensler on his first day in office if elected in the upcoming presidential election, the spotlight is on the SEC Chair’s leadership and decision-making.
Stay tuned for more developments on this story as it unfolds.
