The post Lawmakers to SEC Chair: “How About a Dollar Salary?” appeared first on Coinpedia Fintech News
Representative Tim Burchett has introduced a contentious proposal to slash the annual salary of Securities and Exchange Commission (SEC) Chair Gary Gensler to just $1. The bold amendment is part of a broader legislative push to curb government spending by defunding regulatory bodies like the SEC, which some lawmakers argue have exceeded their mandates with costly consequences.
The Financial Services and General Government (FSGG) appropriations bill for 2024, initially tabled on July 13, contains sweeping financial cuts to multiple government agencies, including a marked reduction in funding for the SEC. The Committee recommends a budget of just under $2 billion for SEC salaries and expenses, fully funded by offsetting fee collections.
Rep. Steve Womack presented the bill to the House Rules Committee, stressing that certain regulatory bodies have become a financial drain due to overregulation. Womack’s narrative aligns with the bill’s intent to mitigate the SEC’s “intrusiveness” by forcing the agency to recenter on its primary mission of investor protection and market integrity.
Gary Gensler, who earns over $300,000 annually, has been a focal point of controversy, especially among critics who accuse him of overzealous regulatory practices in the cryptocurrency sector. Gensler’s tenure has seen heightened enforcement actions, which critics say unfairly target the crypto community and stifle innovation. Reps. Warren Davidson and Tom Emmer echoed this sentiment, having previously introduced the SEC Stabilization Act to decentralize the Chair’s authority.
Crypto’s Place in the Legislative Crossfire
As digital assets increasingly intersect with mainstream financial regulation, the SEC’s role has been intensely scrutinized. The Committee has directed the SEC to revisit the Staff Accounting Bulletin 121 (SAB 121), which advises on the accounting of digital assets, to ensure alignment with the regulatory framework governing traditional financial institutions.
This focus on crypto regulation by the legislative body signifies a growing recognition of the sector’s significance and the need for clear, comprehensive regulatory frameworks that balance innovation with investor protection.
Implications for Digital Asset Accounting and Private Fund Advisers
The report also calls for the SEC to reevaluate its approach to economic analysis, suggesting that the costs of overlapping rulemaking have been under projected. Notably, the SEC is directed to perform a thorough economic analysis on rulemakings since 2021, which could potentially reshape future regulatory landscapes for digital assets and private fund advisers.
The salary cut proposal and associated legislative measures underscore a growing bipartisan divide on the approach to financial regulation, with one camp advocating for a reduction in the SEC’s power and reach. In contrast, others argue for its critical role in ensuring market stability and integrity.