US lawmaker seeks to slash SEC chief’s salary to just $1

U.S. legislator has proposed reducing the annual salary of Securities and Exchange Commission chair Gary Gensler to a mere one dollar.

Representative Tim Burchett has put forth an amendment to the Financial Services and General Government (FSGG) bill, proposing to reduce SEC Chair Gary Gensler’s salary to $1 in an effort that aligns with a broader proposal to defund the regulator.

The FSGG bill, introduced on July 13, encompasses a variety of measures designed to slash federal spending. Gensler, believed to earn over $300,000 annually for his role at the SEC, has become a focal point in this legislative push for fiscal prudence.

Burchett was not the sole legislator advocating for reduced SEC funding, with the overarching bill proposing significant funding reductions for several government agencies.

Representative Steve Womack, presenting the bill to the House Rules Committee on Nov. 6, highlighted the SEC as an example of regulatory overreach, suggesting that defunding could rein in the agency’s “intrusiveness” and steer it back to its original mission.

Womack emphasized the need to halt SEC rulemakings that do not undergo thorough cost-benefit and aggregate impact analyses. He acknowledged the importance of the agencies’ roles but argued that many have deviated from their intended purposes to the detriment of the American public.

“To be clear, the agencies under our jurisdiction perform important functions; however, many have strayed from their mandate and the results have been a true disservice to the American people.”

U.S. Representative Steve Womack

More officials go after the SEC and Gary Gensler

This isn’t the first time U.S. politicians have criticized Gary Gensler and his agency.

On June 12, Representatives Warren Davidson and Tom Emmer introduced the SEC Stabilization Act, which, among other provisions, called for Gensler’s removal as chair. This bill proposed a redistribution of power within the SEC, the creation of an executive director role, and the addition of a sixth commissioner to prevent a single political party from dominating.

Davidson continued his criticism in August, labeling Gensler’s approach to the cryptocurrency sector as “arbitrary and capricious” and publicly advocating for his dismissal using the hashtag #FireGaryGensler.

Conversely, on Oct. 25, Gensler persisted with his skeptical view of the cryptocurrency industry, casting doubt on whether crypto service providers adhere to the financial regulations of the world’s largest capital market.

Moreover, the SEC chief drew parallels between attorneys reaching agreements with crypto entities and the business model employed by digital asset operators, arguing that the economic reality highlights how the “vast majority of crypto assets likely meet the investment contract test” and are, therefore, securities.

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