As a result of a bill amendment introduced by a US House representative, SEC Chair Gary Gensler’s compensation could be reduced.
Regulation in the cryptocurrency business has become a watchword as financial regulators around the world tighten their grip on the asset class. Throughout 2023, U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler has been a source of contention, owing to his increased enforcement efforts against the industry.
Gensler’s activities have garnered more criticism, and the House Rules Committee has accused him of aggravating the nation’s financial problems.
How About a Dollar Salary?
On November 6th, US Congressman Tim Burchett filed an amendment proposal to the Financial Services and General Government (FSGG) bill, requesting that chair Gary Gensler’s compensation be reduced to $1 per year.
“At the end of the bill (before the short title), insert the following: SEC. The salary of Gary Gensler, Chairman of the Securities and Exchange Commission, shall be reduced to $1.”
The law, first submitted on July 17th, is part of the FSGG’s larger attempt to reduce government spending across several agencies. Gensler’s stint as SEC Chair is said to have been marred by disputed financial concerns, with lawmakers claiming that his regulatory measures exacerbated the problems.
House Representative Steve Womack further underlined that certain regulatory agencies have become a financial drain as a result of overregulation, further pushing the narrative of the SEC’s overreach and aggressive regulatory approach.
The United States is spending far too much money.
Our national debt is both a national security and economic threat.@HouseAppropsGOP understands our dire fiscal situation and ensured H.R. 4664 was a product of this sobering reality.
— House Rules Committee (@RulesReps) November 6, 2023
The Committee proposed a $1,999,663,000 budget for SEC Salaries and Expenses, which would be entirely funded by offsetting fee collections. If passed, the bill might result in either a significant reduction in Gensler’s current projected $300,000 yearly compensation or his resignation as SEC chair, potentially affecting crypto sector rules.
Gary Gensler vs. the US Crypto Industry
Throughout the year, the SEC chair’s activities have been anything but passive, marking some of the most contentious legal battles against prominent cryptocurrencies and projects.
The commission filed legal action against cryptocurrency exchange Binance, Binance’s US affiliate BAM Trading, and CEO Changpeng “CZ” Zhao on June 5, 2023. The 13-count complaint accused a number of crimes of US law, including the sale and offer of unregistered securities like BNB and Binance USD (BUSD).
The commission also targeted Coinbase, one of the major platforms in the United States, in addition to Binance. According to the SEC, the majority of the exchange’s crypto offers are securities and should have been registered as such.
Ripple, a prominent cryptocurrency firm, has also been caught in the commission’s regulatory crosshairs. Gensler chastised ventures for failing to register and comply with securities regulations, claiming that this deprives investors of important safeguards.
Why Does This Matter?
The plan to cut the SEC chair’s compensation to $1 could have an impact on Gensler’s approach to regulating the cryptocurrency business. This may cause him to reconsider his actions toward businesses and projects, thus providing a more favorable atmosphere for firms operating in the United States.