The US House Committee on Oversight and Accountability has issued a warning to US Securities and Exchange Commission (SEC) Chair, Gary Gensler, to start cooperating or face disciplinary action.
“If you do not begin cooperating with the Committee’s oversight, the Committee has no choice but to consider the use of the compulsory process,” the letter stated.
Warning Issued to Gary Gensler for Not Providing Essential Information
In a recent letter addressed to Gensler, James Comer, Chairman of the Committee on Oversight and Accountability, strongly emphasized the need for full cooperation from Gensler.
“I expect nothing less than full cooperation with our inquiry, which begins with SEC providing documents actually responsive to our requests.”
Read more: What Does It Mean To Receive a Wells Notice From the SEC?
The letter noted that Gensler did not reveal certain documents.
These are allegedly related to the SEC’s involvement in the development of European social engineering initiatives. Comer states these initiatives are “disguised” as disclosure and due diligence directives being crafted by the European Union (EU).
Comer asserts that Gensler has neglected his obligation to collaborate with Congressional Committees when necessary:
“As the SEC Chair, you have obstructed and continue to obstruct congressional oversight.”
Meanwhile, Comer states that his patience is wearing thin. This is due to waiting nearly four months for the SEC to provide the requested information. He alleges that the SEC have consistently delayed the process
Gensler Issues Recent Warning on Crypto and AI
Gensler’s firm stance against crypto has frequently featured in the news cycle in recent times.
Industry leaders and the community have widely criticized his unwavering that all cryptos should be categorized as securities.
However, In a recent testimony, Gensler reiterated his argument that cryptos should be subject to securities laws:
“Given that most crypto tokens are subject to the securities laws, it follows that most crypto intermediaries have to comply with securities laws as well.”
Meanwhile, Gensler has highlighted the risks of financial advisors using artificial intelligence (AI). He believes there is a potential for advisors to use AI to place their own interests ahead of clients.
Predictive analytics tools can achieve this, and the distinction becomes somewhat blurred. This is depending on the direction in which the firm’s optimization function leans.
