A United States lawmaker has proposed an amendment to the Financial Services and General Government (FSGG) bill that would drastically reduce the salary of Securities and Exchange Commission (SEC) Chair Gary Gensler to just $1 per year. The amendment, put forward by Rep. Tim Burchett, is part of a wider proposal to defund the regulatory agency.
The FSGG bill, which was first introduced on July 13, aims to significantly reduce government spending across various sectors. Rep. Burchett’s proposed amendment specifically targets Gensler’s salary, which is estimated to be over $300,000 per year for his role as the head of the SEC.
However, Burchett is not the only lawmaker taking aim at the SEC. The overall bill seeks to cut funding to several government agencies, including the SEC, due to concerns over regulatory overreach and their financial burden on the government.
During a House Rules Committee meeting on November 6, Rep. Steve Womack argued that defunding the SEC would help limit its regulatory “intrusiveness” and force the agency to refocus on its core mission. Womack emphasized the need for proper cost-benefit and aggregate impact analysis when creating rules and regulations.
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While the agencies under their jurisdiction perform important functions, Womack stated that many of them have strayed from their mandate, resulting in a disservice to the American people.
This is not the first time that Gensler and the SEC have faced criticism from U.S. politicians. In June, Reps. Warren Davidson and Tom Emmer introduced the SEC Stabilization Act, which included provisions to remove Gensler as chair of the SEC. The bill aims to redistribute power within the agency, create an executive director position, and add a sixth commissioner to prevent a majority sway by any one political party.
Davidson and Emmer have been vocal critics of Gensler and the SEC, with Emmer accusing Gensler of being a “bad faith regulator” and alleging that he has targeted the crypto community while ignoring more significant issues.
The proposal to reduce Gensler’s salary to $1 and the earlier attempts to remove him as SEC chair highlight the ongoing tension and debates surrounding the role and effectiveness of the regulatory agency. Critics argue that the SEC’s regulations and enforcement actions have hindered innovation and investment in the cryptocurrency and blockchain space, while supporters emphasize the need for investor protection and market stability.
These discussions are not limited to the U.S., as regulatory frameworks for cryptocurrencies and digital assets worldwide are still being developed and refined. Balancing the promotion of innovation and protecting investors is a challenge for policymakers and regulators globally.
In conclusion, the proposed amendment to slash Gensler’s salary and the larger push to defund the SEC reflect ongoing debates about the role and effectiveness of the regulatory agency. As the cryptocurrency and blockchain industries continue to evolve, finding a balance between innovation and investor protection will remain a crucial task for regulators and lawmakers worldwide.
