Representative Patrick McHenry and Representative Ann Wagner have sent a letter to Securities and Exchange Commission Chair Gary Gensler criticizing him for neglecting the Commission’s mission to enable access to capital for businesses.
McHenry is Chairman of the House Financial Services Committee, and Wagner is the Chair of the Subcommittee on Capital Markets. The two elected officials lambasted Gensler for “ignoring its capital formation mission during his tenure.”
Under the leadership of Gensler, the Commission has charted a path of aggressive rulemaking, pursuing a social agenda and focusing on investor protection items while neglecting the Commission’s mandate to facilitate access to capital and access to investor opportunity. Insiders claim that the Gensler Commission is the most political SEC in recent history, with rumors that the Chair is attempting to ingratiate himself within his party to gain a higher position in the administration.
McHenry and Wagner demand that Gensler change his rulemaking agenda to pursue the expansion of opportunities for underrepresented entrepreneurs and empower small businesses. The letter claims that Gensler has ignored the successes of the bipartisan JOBS Act that helped both private and public markets while “implementing costly regulatory disclosure requirements on topics that go beyond [the SEC’s] scope.”
The two Representatives state that Gensler’s management has undermined the SEC’s mission while threatening the strength of the U.S. capital markets and jeopardizing American business’ ability “to foster domestic economic activity and compete globally.”
The letter demands the Commission provide answers to specific questions while lambasting Gensler’s rulemaking agenda:
“While more than 50 rules have been proposed under your leadership, none appear to directly address capital formation. If the SEC believes that one or more of these proposals directly addresses this crucial issue, please explain which ones, and specifically how that standard is met.”
The letter has been sent to the Commission in advance of a House Financial Services hearing next week (April 18th), where Gensler will testify on his tenure at the SEC.