US representative Tim Burchett is suggesting that SEC Chair Gensler’s salary be reduced to a dollar as part of a progressive plan to defund the regulatory agency — this proposal is part of a larger bill aiming to reduce government spending across the board.
According to the SEC’s official website it is estimated that the SEC Chair earns a six figure salary and lawmakers are looking to shake things up.
The Goal of the Bill
This bill is not just targeting the SEC as it focuses on drastically cutting funding to several government agencies as well. Representative Steve Womack, while presenting the bill to the House Rules Committee expressed concerns about regulation overreach and the financial burden these agencies impose on the government.
“To be clear, the agencies under our jurisdiction perform important functions; however, many have strayed from their mandate and the results have been a true disservice to the American people,” Womack stated.
The goal to defund the SEC is to decrease its regulatory intrusiveness and refocus the agency on its core mission which is to (1) protect investors, (2) maintain fair, orderly, and efficient markets and (3) facilitate capital formation.
“Specifically, we turn off rulemakings at the Securities and Exchange Commission that lack proper cost-benefit analysis and aggregate impact analysis,” Representative Woman added.
Read: US SEC Faces Scrutiny From GAO Over Controversial Crypto Accounting Bulletin
The OIG’s Statement On The SEC’s Management And Performance Challenges
As if that was not enough, the Office of the Inspector General (OIG) of the SEC has recently released its annual examination of the agency’s management and performance challenges. And guess what — crypto made the list.
No surprise right there for the crypto community but of course the OIG pointed out the lack of disclosure and widespread non-compliance with existing securities laws by crypto asset market participants. They also emphasize the need for comprehensive legislation and coordination in regulating crypto assets that are not securities and certain stablecoins.
Read: US SEC Is Struggling To Hire Crypto Experts Because Applicants Don’t Want To Sell Their Holdings
Final Thoughts
Do note that the proposal is not yet final and would still require approval from a majority of the House members to become official.
I guess we have to get ready to witness the clash between lawmakers, regulators and the crypto world. So will Gary Gensler challenge the one dollar salary? And how will the SEC handle the ongoing challenges related to crypto assets? We will just have to find out in the coming weeks or months.
