Gary Gensler’s Salary Now $1? Proposed Bill Aims to Cut SEC Funding!

SEC Chair Gary Gensler’s salary could be slashed to $1 under a bold proposal that’s rattling the financial world. Representative Tim Burchett’s audacious amendment is part of a larger legislative effort to control government spending and reduce funding for regulatory bodies like the SEC. Critics argue that these organizations have gone beyond their original mandates and incurred significant costs along the way.

Dive into the details here!

Substantial Cuts in the 2024 Bill

The Financial Services and General Government (FSGG) appropriations bill for 2024, initially introduced on July 13, contains significant financial reductions for various government agencies. This includes a notable decrease in funding for the SEC, with the Committee proposing a budget of just under $2 billion for SEC salaries and expenses, funded entirely through offsetting fee collections.

Pushing for Reform

Presenting the bill to the House Rules Committee, Rep. Steve Womack emphasized the financial burden that certain regulatory bodies have become due to excessive regulation. Womack’s narrative aligns with the bill’s primary goal, which is to refocus the SEC on its core mission of safeguarding investors and maintaining market integrity.

Gensler’s Role in Crypto Regulation – Where Are We Falling Short?

Gary Gensler, who currently earns an annual salary exceeding $300,000, has become a lightning rod for controversy, especially among critics who accuse him of implementing overly strict regulatory practices within the cryptocurrency sector. During his tenure, the SEC has undertaken numerous enforcement actions that some believe unfairly target the crypto community and hinder innovation. Echoing this sentiment, Reps. Warren Davidson and Tom Emmer previously introduced the SEC Stabilization Act, which seeks to decentralize the Chair’s authority.

Slamming the SEC’s Approach

As digital assets become increasingly intertwined with mainstream financial regulations, the SEC’s role has come under intense scrutiny. The Committee has directed the SEC to review the Staff Accounting Bulletin 121 (SAB 121), which provides guidance on the accounting of digital assets. The aim is to ensure that it aligns with the regulatory framework that governs traditional financial institutions.

Also Read: Gary Gensler Might Not Be Replaced Due to President Biden’s Influence

SEC Has Some Homework to Do!

The report also calls for the SEC to reassess its approach to economic analysis, suggesting that the costs of overlapping rulemaking have been consistently underestimated. Notably, the SEC is directed to conduct a comprehensive economic analysis of rulemakings implemented since 2021.

Read More: SEC Under Fire for Repeated Legal Losses: Here’s Why Their Approach Is Concerning

The battle over the future of financial regulation continues, with no clear winner in sight.