US Republicans probes SEC Gensler's Hiring Practices
- US House Republicans probe SEC Chair Gensler for alleged politically influenced hiring decisions, sparking concerns of federal law violations.
- US GOP lawmakers claim emails suggest SEC hiring was based on political affiliations, potentially breaching Civil Service Reform Act guidelines.
- SEC’s Gensler is asked to provide hiring documents by Sept. 24 amid accusations of favoring candidates with left-leaning political views.
US House Republicans probes SEC’s Gensler's Political Hiring Practices
House Republicans have launched an inquiry into the hiring practices of Securities and Exchange Commission (SEC) Chair Gary Gensler. The investigation raises concerns that the agency may be violating federal law by considering political affiliations in its hiring decisions.
US House Republicans Allegations of Politically Motivated Hiring
In a letter sent on September 10, Grand Old party (GOP) lawmakers Jim Jordan, Patrick McHenry, and James Comer expressed concern over the SEC’s recruitment process. They accuse Gensler, a Democrat, of hiring individuals with left-leaning political affiliations for senior roles at the agency, which could be in violation of federal law. The letter highlights the hiring of Dr. Haoxiang Zhu as the director of trading and markets, questioning whether his political affiliation played a role in his appointment.
According to the Republicans, email exchanges between Gensler and Zhu in May 2021 suggest that political ideology may have influenced Zhu’s hiring. In the emails, Zhu reportedly assured Gensler that he was “in the right place on the political spectrum,” raising concerns about the impartiality of the hiring process. Zhu was subsequently hired six months later, in November 2021.
US House alleges Potential Violation of Federal Law
The letter from GOP lawmakers points out that if these allegations are accurate, the SEC could be violating the Civil Service Reform Act. This law prohibits federal agencies from considering an applicant’s political ideology when hiring. The lawmakers argue that such practices would undermine the SEC’s claim of impartiality and objectivity.
Gensler Asked to Provide Documents
The letter requests that Gensler turn over documents and communications related to the SEC’s hiring and staffing decisions, particularly those involving directors and senior roles. He has until September 24 to respond to the House Judiciary Committee, chaired by Jim Jordan.
US SEC Under Scrutiny for Crypto Enforcement
This investigation comes at a time when Gensler’s leadership at the SEC is under scrutiny for aggressive enforcement actions against crypto firms, which reached a record high in 2023. Former President Donald Trump has also expressed intentions to remove Gensler if he wins the upcoming presidential election.
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