Three committee chairs in the United States House of Representatives have expressed their dissatisfaction with the response received from U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler regarding their inquiry into recordkeeping requirements.
Judiciary Committee Chair Jim Jordan, Oversight Committee Chair James Comer, and Financial Services Committee Chair Patrick McHenry issued a letter demanding a more satisfactory response, stating that Gensler’s reply did not address their direct requests.
The congresspeople, joined by Rep. Tom Emmer, were prompted to take action following a Wall Street Journal report that criticized the SEC and other agencies for inadequate recordkeeping.
The report highlighted the use of chats by government officials for official business, which were not being searched to fulfill Freedom of Information Act requests.
The recent letter reiterates the original requests and includes a demand for an explanation if Gensler does not intend to comply.
The letter, dated June 28, also points out inconsistencies in Gensler’s publicly accessible meeting schedules in 2021 and makes mention of cryptocurrency.
Gensler faced additional criticism related to cryptocurrencies when the Blockchain Association released a paper suggesting that he should recuse himself from digital asset enforcement decisions.
The paper claimed that the SEC had neglected its role as a rulemaking body in the digital asset space.
It specifically raised concerns about the SEC’s stance on whether digital assets other than Bitcoin qualify as securities and whether digital asset trading platforms are considered unregistered securities exchanges.
The paper argued that Gensler had shown bias in his statements, asserting that he had already formed opinions on these matters.
The paper reminded recipients of Wells notices, who are individuals or entities facing potential SEC enforcement actions, that they could seek Gensler’s recusal either through the SEC or in federal court.
In summary, three committee chairs have expressed their dissatisfaction with the SEC Chair’s response to their inquiry into recordkeeping requirements, citing unaddressed requests.
This comes in the wake of criticism regarding the SEC’s recordkeeping practices and Gensler’s handling of digital asset enforcement decisions, prompting calls for his recusal in certain cases.
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