Lawrence Damilola
U.S. House Republicans have initiated an investigation into U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler, alleging that the agency may be favoring candidates based on political affiliations during their hiring process. Lawmakers claim this practice could be in violation of federal law, specifically the Civil Service Reform Act of 1978.
On Tuesday, Republican lawmakers Jim Jordan, Patrick McHenry, and James Comer sent a letter to Democrat Gensler, accusing him of hiring “individuals from left-leaning organizations to fill senior roles at the SEC.”
The lawmakers cited email correspondence from May 2021, claiming it shows that Gensler’s decision to hire Dr. Haoxiang Zhu, the SEC’s Director of Trading and Markets, might have been “influenced by his political affiliation.”
The letter states that in May 2021, Gensler had a conversation with Dr. Zhu regarding his potential employment at the SEC. Later, Dr. Zhu sent an email indicating his political stance, saying, “I believe I’m in the right place on the political spectrum, and I’m happy to provide as many details as needed so you feel comfortable.” Dr. Zhu was subsequently hired on November 19, 2021. The lawmakers argued that this correspondence suggests that the SEC “appears to be unlawfully considering an applicant’s political ideology when hiring bureaucrats.”
The House Republicans have requested Gensler to provide documents and communications regarding the SEC’s hiring and staffing decisions since April 17, 2021. They are particularly interested in hiring decisions related to directors, associate directors, and Gensler’s staffers. The letter also asks for any information on how the SEC evaluates its applicants’ political affiliations or ideology.
The letter from the House Republicans emphasized that if these allegations are substantiated, it would mean the SEC is “violating the Civil Service Reform Act to fill the agency with employees who possess a particular ideology.” They have requested Gensler supply all relevant documents to the House Judiciary Committee, chaired by Jim Jordan, by 5:00 p.m. on September 24, 2024.
This request includes all documents related to the SEC’s hiring practices and any evaluations of applicants’ political affiliations or ideologies. Lawmakers argue that such hiring practices could compromise the SEC’s role as an impartial regulatory body.
Gensler, nominated by President Joe Biden, has seen increased scrutiny from Republican lawmakers recently, especially regarding the SEC’s regulatory stance on the cryptocurrency sector. His leadership has been marked by increased enforcement actions against crypto firms, which have doubled from 2021 to 2023.
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Lawrence does not hold any crypto asset. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
