US lawmakers ‘deeply concerned’ that SEC is issuing rules too quickly, without enough response

Two US lawmakers have requested answers from the Securities and Exchange Commission (SEC) about its rule-making process. Their request follows the SEC Inspector General’s latest report that “raises significant concern that the agency is trying to issue too many rules, too quickly.”

‘SEC is issuing rules without enough response’

U.S. Senator Pat Toomey (R-PA) and Representative Patrick McHenry (R-NC) have sent a letter to Securities and Exchange Commission (SEC) Chairman Gary Gensler, requesting information about the regulation. agency’s rule-making process on Wednesday.

The letter addresses a number of issues identified in an October report published by the SEC Inspector General (IG), an independent office that conducts, oversees, and coordinates inspections and investigations of SEC programs and activities.

Senator Toomey tweeted on Friday:

I was deeply concerned when the IG report found that the SEC was issuing rules without an adequate response.

The letter details that the IG report “raises significant concern that the agency is trying to issue too many rules, too quickly – in some cases employing little or no temporary staff.” experienced in regulatory – harm to US investors, businesses and capital markets. “

The IG report notes that between January and August of this year, the SEC proposed 26 new rules, more than double the number of new rules proposed throughout 2021 and more than those proposed. produced in the previous 5 years.

Following the release of the report, Representative McHenry tweeted: “A new IG report sheds light on Gary Gensler’s reckless leadership of the SEC.” He chooses:

President Gensler’s effort to create a progressive agenda through our capital markets is to draw resources from the SEC’s core mission – including investor protection.

The letter continued:

By cutting the majority of these offices out of the rule-making process, your office has limited their opportunity to provide meaningful and important feedback on the draft rule’s impact on investors and small businesses.

The lawmakers ended their letter with a list of questions regarding how the SEC plans to address the issues identified in the IG report. They asked Gensler to respond no later than November 16.

Last week, four congressmen sent a letter to Gensler accusing him of “hypocritical mismanagement of the SEC,” saying the chairman refused to practice what he preached. Gensler has also been criticized for taking an enforcement-focused approach to regulating the crypto industry.

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