In a recent development, the chairs of three committees in the U.S. House of Representatives are pressing Gary Gensler, Chairman of the U.S. Securities and Exchange Commission (SEC), for more substantial responses to their queries on recordkeeping norms.
The chairs, Jim Jordan of the Judiciary Committee, James Comer of the Oversight Committee, and Patrick McHenry of the Financial Services Committee, stated that they are dissatisfied with Gensler’s response to their initial inquiry on Nov. 1.
Their letter requested confirmation that the SEC adheres to federal recordkeeping and transparency regulations. Additionally, they sought assurance that Gensler and his team have not conducted official duties through private email accounts. They also requested clarity on the agency’s understanding and use of “off-channel communications.”
This line of inquiry came as a reaction to a Wall Street Journal report that criticized the SEC, among other agencies, for subpar recordkeeping practices. The article pointed out that government officials often resort to record-keeping tactics for which Wall Street firms have recently received fines from the SEC.
Gensler and the SEC face additional criticism from the crypto sector. In a recently published paper, the Blockchain Association suggests that Gensler should disqualify himself from digital asset enforcement decisions.
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According to them, Gensler’s stance that all digital assets (apart from Bitcoin) are unregistered securities indicates a prejudiced view on the subject. The paper suggests that recipients of a Wells notice can petition for Gensler’s recusal through the SEC or a federal court.
