The SEC having internal trouble, will this lead to an overhaul of the agency?
One would not be faulted for believing that the SEC is in turmoil. Its own staff is quitting at a pace not seen in 10 years. But why? Let us see if we can not find out why.
A letter from the Senat
The letter, dated Oct. 27, was signed by senators Thom Tillis (R-NC), Mike Crapo (R-ID), Tim Scott (R-SC), Michael Rounds (R-SD), Bill Hagerty (R-TN), and Steve Daines (R-MT). In it they want the SEC to explain why their staff is leaving the agency at a pace not seen in a decade.
The Republican Senators cited a public report published on October 13 by the Office of the Inspector General, the SEC’s own internal watchdog. In that report topic such as staff attrition and reported discontent among the staff is talked about. "The SEC employees interviewed for the report said they received little feedback on rules they had written, emphasizing their fear of an increased litigation due to shortened industry comment periods".
Efforts to ram through hurried rulemaking without proper analysis, deliberation or consideration of downstream negative impacts is nothing short of regulatory malpractice.
SEC Chair Gary Gensler
The senators want to know how Gary Gensler, SEC Chair, plans to address the issues raised in the report. The concerns raised by the employees and the issue of too little time given to the industry for feedback on rules. So far the SEC has introduced 26 new rules this year. A number that is more than double the previous year's number. And the highest number seen in five years. And we still have two months to go of this year.
There has been a lot of criticism levied against Gensler. Many believe he is just a power-hungry regulator. And do not agree with his regulation strategy of crypto. Not to mention his approach to lure companies' kin to "talk" and then hit them with enforcement actions. Something that has put a pin in the wheel of good-faith cooperation.
This looks to be the latest critic to be added to the pile of criticism levied against him. I would not be surprised to see Gensler at the very least be swapped out at the next Presidental election. I am assuming Biden will not run for a second term. But even under a second term for Biden. There is only so much criticism that can be piled up before a change is needed. Even if it is only a swapping of figureheads. But very possibly this can lead to an overhaul of the entire agency. As it is not painting a pretty picture for the current administration.
What is your thought on this? Do you think the SEC is in trouble and we will see an overhaul of the agency? Please sound off in the comments section down below. If you would like to support me and the content I make, please consider following me, reading my other posts, or why not do both instead.
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