Gary Gensler Called Out for Alleged Political Favoritism in Hiring New SEC Employees
Gray Gensler Criticized
Gary Gensler, the United States Securities and Exchange Commission (SEC) chair, has been criticized for allegedly considering political affiliations of potential employees during the hiring process. Members of the Oversight, House Judiciary, and Financial Services Committees are behind these allegations.
In a joint letter, they argue that Gensler violates federal law by asking candidates about their political stands. While their accusations are not related to the SEC’s crypto enforcement actions, they do come at a time when Republican candidate Donald Trump plans to remove Gensler from office once he wins the elections.
The letter, which has the signatures of Finance Services Committee Chair Patrick McHenry, Judiciary Committee Chair Jim Jordan, and Oversight Committee Chair James Comer, questions the potential appointment of Haoxiang Zhu as the Director of Markets and Trading at SEC.
Three Committees Share Evidence of Gensler Allegedly Violating Federal Law
According to Comer, McHenry, and Jordan, Gensler asked Zhu about his political alignment, and the latter reassured him of his support for Democratic candidate Kamala Harris. To support their allegations, the three shared an email sent to Gensler, in which Zhu promised to explain in detail about his political affiliation if needed.
That said, the three Committees are convinced that Gensler and the SEC are violating the Civil Service Reform Act established in 1978, which demands state agencies refrain from hiring candidates based on their political ideologies.
Committees Request More Documents From Gensler
They have vowed to find out if the SEC violated the Act when hiring existing employees. In the letter, the Committees have requested Gensler to provide communications and documents associated with the hiring of his staff since 2021. He has until September 24th to submit the requested documents.
The latest criticism places the SEC Chair at the center of two major issues: Controversies over the hiring process and the current regulatory war with blockchain players. While many crypto enthusiasts believe that only Trump will fire Gensler, Ripple boss Brad Garlinghouse, on the other hand, claims that the SEC Chair could leave office regardless of who wins the elections.
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