US SEC Chair Gary Gensler faces probe by House Republicans over alleged illegal hiring practices, sparking concerns of political bias in recruitment decisions. By Rupam Roy 12 hours ago Updated 10 hours ago
Highlights
- US SEC Chair Gary Gensler faces probe over alleged illegal hiring practices.
- House Republicans investigate potential political bias in SEC recruitment decisions.
- Lawmakers question the hiring of SEC’s Director of Trading and Markets, Dr. Haoxiang Zhu.
The US SEC Chair Gary Gensler faces a probe over hiring practices, sparking market discussions. The investigation, launched by the House Republicans, indicates that the agency may be breaking federal law by potentially factoring political leanings into its recruitment process, sparking concerns about impartiality in hiring practices.
House Republicans Probe US SEC Chair Gary Gensler
The House Republican lawmakers Jim Jordan, Patrick McHenry, and James Comer, question the hiring decisions of Gary Gensler in a September 10 letter. The lawmakers suspect that the agency may be favoring individuals with specific political leanings, potentially breaching the Civil Service Reform Act of 1978.
In the letter sent to the US SEC Chair, the lawmaker highlighted an email exchange that indicates that political ideology could have influenced the hiring of Dr. Haoxiang Zhu, SEC’s Director of Trading and Markets.
Meanwhile, the letter suggested that after a discussion about potential employment at the agency, Dr. Zhu assured Gensler of his political alignment. It noted him stating, “I believe I’m in the right place on the political spectrum.”
The email, dated May 2021, raises concerns as Zhu was hired six months later, in November 2021. This development is used by the House Committee as evidence that the agency might be unlawfully considering political ideology when making hiring decisions.
Meanwhile, the lawmakers argue that if these allegations hold, they would undermine the SEC’s duty to remain unbiased. In addition, they also noted a trend of hiring from left-leaning organizations for senior roles, further suggesting a pattern of ideologically motivated recruitment. The investigation aims to determine whether Gary Gensler’s leadership has compromised the agency’s neutrality.
Crypto Market Keeping Close Track
Gary Gensler has been given a deadline of September 24 to provide crucial documents on the agency’s recent hiring practices. Besides, the House Committees requested all communications and records related to hiring decisions for senior roles in the agency. In other words, the committee is seeking evidence of whether political ideologies influenced the hiring choices.
Meanwhile, this investigation comes amid growing scrutiny of the US SEC Chair’s tenure, marked by aggressive enforcement actions against crypto firms. In recent years, the agency’s enforcement actions have significantly increased, drawing criticism from market participants who accuse Gary Gensler of overreach.
Meanwhile, the market eagerly awaits as the deadline approaches for the documentation submission. Notably, the agency’s chair, appointed by President Joe Biden, faces strong criticism from the broader. For context, former President Donald Trump vows to remove him if he wins the upcoming presidential election.
On the other hand, it appears that this latest development has also caught the eyes of crypto market enthusiasts. A flurry of market watchers have voiced against the agency’s Chair, and now demanding his termination from the role.