US Lawmaker Aims to Slash SEC Chair's Salary to $1 in Regulatory Overhaul Attempt
Summary:
A U.S. lawmaker, Rep. Tim Burchett, proposed an amendment to decrease the annual salary of the Securities and Exchange Commission (SEC) Chair, Gary Gensler, to just $1 as part of a broader plan to reduce funding for the SEC. The criticism towards the SEC doesn't end there; as part of the SEC Stabilization Act, Reps. Warren Davidson and Tom Emmer aim to unseat Gensler, redistribute agency power, and add a sixth commissioner to prevent political imbalance. Notably, these moves claim to address perceived overregulations and financial burdens imposed by the SEC on the government.
A proposal has been made by a US legislator to drastically reduce the salary of Gary Gensler, the Chairman of the Securities and Exchange Commission (SEC), to just $1 per year. In an amendment to the Financial Services and General Government (FSGG) suggested by Rep. Tim Burchett, he proposed to decrease Gensler’s annual remuneration as part of a broader programme to reduce funding for the SEC. The legislation, first presented in July this current year, is aimed at notably reducing government expenditures across a variety of sectors. Gensler, who reportedly earns over $300,000 per year, is not the sole target of this legislation; it is designed to make significant cuts to the funding of many governmental bodies.
As Rep. Steve Womack introduced the bill to the House Rules Committee on November 6, he explained that the SEC, and various other agencies, have over-exploited their regulatory powers leading to unwarranted financial strain on the government. Therefore, Womack suggested, the SEC funding should be cut to curb its overreach and to refocus its core responsibilities effectively. Many of these governmental bodies have deviated from their primary missions, resulting in a great disservice to the citizens, Womack added.
Gensler and his agency were also under the scanner earlier. In June, Reps. Warren Davidson and Tom Emmer presented the SEC Stabilization Act in the House of Representatives, which had a key provision to remove Gensler from his SEC chairmanship. If this bill is successful, Gensler would be removed and SEC Power would be rebalanced among the Chair and other commissioners. Additionally, an executive director role would be created, and a sixth commissioner would be added to prevent a single political party from dominating the commission. Both Davidson and Emmer are known as staunch critics of the SEC under Gensler's leadership. Emmer in particular has labeled Gensler as a "bad faith regulator," accusing him of erratically targeting the crypto sector while failing to catch the real culprits.
Published At
11/7/2023 2:22:32 AM
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