SEC's Gensler Warned of Possible Subpoena amid Criticisms Over Cooperation with EU
Summary:
James Comer, head of the Oversight and Accountability Committee, has warned SEC Chair Gary Gensler of potential compulsory measures to obtain necessary documents if the SEC doesn't cooperate. Comer has also expressed criticism on the SEC's circumvention of Congress to advance an agenda deemed harmful to American taxpayers. The issue concerns the SEC's coordination with the EU on environmental, societal, governance (ESG), and climate-related matters. Comer and Senator Tim Scott had earlier sought information about how the US's involvement with these EU measures could impact American companies. However, Comer stressed that the SEC has yet to provide substantial relevant documents.
The Oversight and Accountability Committee's head, James Comer, from the United States House of Representatives, has warned Gary Gensler, the Securities and Exchange Commission (SEC) leader, of a possible subpoena. He stated in his October 12 letter that if the SEC chooses not to collaborate with the committee, they will be forced to exert lawful power to secure necessary documents. Comer voiced unease over the SEC's approach to bypass Congress to forward an agenda detrimental to American taxpayers. Although Congress members, who support cryptocurrency, have criticized Gensler similarly, this particular letter is unrelated to crypto. Instead, Comer's message concerned SEC's reluctance and cooperation with the European Union (EU) on environmental, societal, governance, and climate-related issues.
In June, Comer and Senator Tim Scott, currently a candidate in the GOP presidential primary, sought details from Gensler about the United States' involvement in the EU's climate regulations potentially affecting American companies. A similar request was made to the Treasury Secretary, Janet Yellen. In Comer's recent letter, he stated that the SEC has yet to provide substantial, relevant documents. He stressed that the majority of the produced documents were already accessible publicly on the SEC's site or released under the Freedom of Information Act. A parallel condition was shown in Patrick McHenry's April 12 letter where he stated the provided 232 pages of documents by the staff were already publicly accessible and not responsive to the demand.
Echoes of Comer's concerns of unclear legal authority can be heard among the supporters of crypto, suggesting that legislation might be necessary. In his initial letter, he referenced the Supreme Court ruling on West Virginia v. EPA that dealt with the significant questions doctrine, possibly affecting the SEC's activities in the crypto field.
Published At
10/12/2023 9:50:00 PM
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