In the minutes before the testimony by SEC Gary Gensler in front of the House Financial Services Committee, the leadership has distributed a letter pounding Chair Gensler on the “cumulative impact” of the SEC’s rulemakings during his tenure.
The Republican leadership demands that Gensler “ahalt the finalization or implementation of interrelated rulemakings until their cumulative impacts are evaluated, and the public and market participants are given sufficient time to respond and comply with those new regulations.”
The letter points to a report issued by the Inspector General in 2022 that criticized the management of the SEC that questioned the aggressive rulemaking pursued by Gensler. The letter states his leadership has created:
“An overwhelmed public that has not been granted sufficient time to evaluate proposals and provide meaningful input due to the number and interconnectedness of the Commission’s prolific, compounding, and fast-passed agenda.”
Adding that “staggering costs” have harmed the economy – more so for smaller firms.
Republicans request no further rules until the SEC:
“Conduct(s) a comprehensive cost-benefit analysis of the aggregate impact of rules in the aforementioned categories and seek public comment on this analysis. 2. Propose a reasonable, workable, and staggered schedule for public comment on the adoption and implementation of the proposals, considering their overlapping nature, significant compliance and operational burdens, and if they may be insurmountable for smaller or emerging firms.”