By George Ward
Amid ongoing lawsuits between it and prominent crypto exchanges, the United States Securities and Exchange Commission (SEC) has come under criticism from several lawmakers. Representative James Comer is the latest lawmaker to have called out the SEC chairman for his role in hindering congressional oversights due to the commission’s repeated delays in providing the needed information.
Congressman Demands Transparency From SEC Chair
Recently, journalist Eleanor Terrett shared the content of the letter written by US Representative James Comer addressed to Gary Gensler, Chairman of the SEC. In the note, Comer accused Gensler of taking actions that impede disclosure and transparency.
Terrett stated that Reps Comer is known for going hard on government agencies, as evidenced by his issuance of subpoenas when necessary. Comer claimed that Gensler has hindered and continues to thwart congressional oversight.
The letter comes when the commission’s transparency and disclosure have received significant attention. Market observers and stakeholders have been closely following the regulatory body’s moves, given the rapid changes the crypto market is undergoing.
In addition, Comer’s call for more transparency has resonated with many who believe that strong oversight is critical to maintaining the finance ecosystem’s integrity and stability. However, critics argue that any perceived inactions by regulatory bodies such as the SEC could undermine investor trust and confidence in the market.
SEC Faces Increased Scrutiny
Representative Comer requested specific information from the SEC in its June 5, 2023 letter. However, nearly four months later, the Committee claims it is still awaiting the commission’s response to its request.
The congressman also claimed to be aware of the SEC’s usual pattern of delay and misdirection. According to the journalist, Comer’s frustration is evident as he accuses the SEC of failing to meet its statutory obligation by providing the requested information to Congress.
Comer also cited Section 24(g) of the Securities Exchange Act to back his claim against the actions of the Gensler-led SEC. This revelation has raised concerns about the SEC’s transparency and accountability as a regulatory agency tasked with overseeing and regulating the financial markets in the United States.
In addition, a document shared by Comer refers to a recent case where the regulator fined Goldman Sachs $6 million for withholding information from the agency. Terret noted that the stark contrast between the SEC’s actions and its legal obligations highlights the importance of Comer’s call for greater transparency and cooperation.
One Week Ultimatum For Gensler
Meanwhile, Terret further revealed that Representative Comer had given the SEC Chair a one-week deadline to provide the requested documents. However, some industry analysts claim that the Congress’ deadline is an empty threat.
According to a commenter on X, Congress must go beyond “strongly worded” letters and take concrete action against the SEC as the commission does to crypto exchanges. Observers contended that issuing threats without following through does not address the concerns of investors seeking transparency and accountability in the crypto sector.