SEC Chair Gensler Faces Congressional Pressure Over EU Coordination and Lack of Transparency - Blockchain.News
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SEC Chair Gensler Faces Congressional Pressure Over EU Coordination and Lack of Transparency

The House Committee on Oversight and Accountability has intensified scrutiny on SEC Chair Gary Gensler over the SEC's coordination with the EU on legislative matters and a perceived lack of transparency. The discord, highlighted in a letter dated October 12, 2023, follows a pattern of communication deadlock between the SEC and Congress, with implications on broader legislative and regulatory frameworks. The Committee expects more forthright engagement from the SEC by October 19, 2023, threatening compulsory processes for compliance.


  • Oct 13, 2023 16:20
SEC Chair Gensler Faces Congressional Pressure Over EU Coordination and Lack of Transparency

U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler is under heightened scrutiny from the House Committee on Oversight and Accountability concerning the SEC's interactions with European Union (EU) bodies on legislative matters. The tension primarily revolves around information sharing and the perception of the SEC acting beyond its mandate, potentially bypassing Congress to further an agenda that could adversely impact American taxpayers.

Congressional Oversight

In a letter dated October 12, 2023, Committee Chair James Comer highlighted the ongoing oversight activities aimed at examining the SEC's actions, especially those seen as attempts to circumvent Congress. The letter conveys a strong sense of dissatisfaction with Gensler's lack of cooperation and obstruction of the oversight process. It underscores the Committee’s intention to resort to compulsory process should cooperation remain elusive.

The scrutiny is not confined to this Committee alone. Earlier instances also saw Gensler’s dealings with the Congress come under the lens. The discourse mirrors a similar sentiment expressed by Patrick McHenry in his April 12 letter concerning information requests related to the prosecution of former FTX CEO Sam Bankman-Fried, indicating a pattern of communication deadlock between the SEC and Congress.

EU Coordination and Transparency Concerns

Central to the discord is the SEC’s involvement in the development of EU's environmental, social, and governance (ESG) and climate-related directives. Comer, alongside Senator Tim Scott, sought clarity on the U.S.'s collaboration with the EU on these fronts in a letter dated June 5, 2023, a query that, according to Comer, has been met with substantial delay and misdirection from the SEC.

The lack of substantive response from the SEC and the majority of shared documents being already publicly available has fueled the Committee’s frustration. It contradicts the SEC’s foundational ethos of disclosure and transparency, as emphasized by its recent enforcement actions, including a $6 million fine against Goldman Sachs for withholding vital information.

Implications and Future Actions

The unfolding scenario casts a shadow on the SEC’s commitment to transparency, more so when juxtaposed with its enforcement mantra of meaningful cooperation aiding expedient investigations. The mounting pressure from Congress accentuates the importance of a transparent discourse to uphold the integrity of both legislative and regulatory frameworks.

Comer’s ultimatum to Gensler for a more forthright engagement by October 19, 2023, is a testament to the escalating impasse that could see the employment of compulsory processes to ensure compliance. The dynamics between the SEC and Congress are at a critical juncture, with implications not only on the ongoing oversight but potentially on broader legislative and regulatory landscapes.

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