A US Lawmaker Claims SEC Chairman is Loyal to Banks
- US lawmaker Tom Emmer believes Gensler’s previous banking experience makes him a partial regulator.
- Emmer claimed Gensler was loyal to top financial institutions.
- Other lawmakers criticized Gensler for failing to stay transparent with Congress.
Gary Gensler, the chairman of the Securities and Exchange Commission (SEC), appeared before the House Financial Services Committee (HFSC) on Wednesday and was subject to severe questioning and criticism. US lawmaker Tom Emmer accused Gensler of being loyal to Wall Street “at the clear expense of innovation, competition, and everyday Americans.”
Emmer said it was clear that Gensler was “working to consolidate your own power even though it means crushing opportunities for everyday Americans and, frankly, the financial future of this country.”
Emmer made several allusions to Gensler’s financial experience, which included 18 years as a partner and co-head of finance at Goldman Sachs. Emmer believes that Gensler’s connections to the banking sector prevent him from acting as an unbiased regulator.
According to Emmer,
Given your 18-year career at one of the biggest banks in the world and the personal financial fortune you amassed there, do you think it’s possible for you to serve as an impartial regulator and not favor large financial intermediaries?”
Emmer further stated that
This perspective has nothing to do with a concern you noted in a speech last year where you said, quote, ‘Over the past year, several bank executives have shared their concerns with me about the sheer number of depositors who have moved money from their bank accounts into crypto-related exchanges and wallets.”
Representative Patrick McHenry also proposed during the hearing that the SEC may be subpoenaed for records pertaining to former FTX CEO Sam Bankman-Fried. McHenry said Gensler tried to “choke off the digital asset ecosystem” and “refused to be transparent with Congress.”
The SEC has frequently come under fire for neglecting to make clear its position on how certain digital assets intersect with securities laws.