The hiring practices of US SEC Chair Gary Gensler are under scrutiny, sparking discussions in the market. House Republicans have launched an investigation suggesting that the agency may be violating federal law by potentially considering political leanings in its recruitment process. This has raised concerns about impartiality in hiring practices.
A letter sent by House Republican lawmakers Jim Jordan, Patrick McHenry, and James Comer to Gary Gensler questions the hiring decisions at the SEC. The lawmakers suspect that specific political leanings may be favored in the recruitment process, potentially breaching the Civil Service Reform Act of 1978.
The lawmakers pointed out an email exchange indicating that political ideology could have influenced the hiring of Dr. Haoxiang Zhu as the SEC’s Director of Trading and Markets. The email, dated May 2021, is seen as evidence that Gensler might be improperly considering political ideology in hiring decisions.
The investigation aims to determine if Gensler’s leadership has compromised the SEC’s impartiality, especially with a trend of hiring individuals from left-leaning organizations for senior roles. Gary Gensler has been given a deadline of September 24 to provide essential documents on recent hiring practices for further scrutiny by the House Committees.
Amid this investigation, there is growing criticism of Gensler’s tenure, characterized by aggressive enforcement actions against crypto firms. The outcome of the probe could have significant repercussions, as Gensler, appointed by President Joe Biden, faces mounting opposition, with former President Donald Trump vowing to remove him if elected again.
The controversy has attracted attention from crypto market enthusiasts who are now calling for Gensler’s termination from his role as the SEC Chair.