The recent investigation into the United States Securities and Exchange Commission (SEC) Chairman Gary Gensler has captured the attention of the cryptocurrency community and beyond. Reports suggest that Gensler and his agency may be violating federal laws by favoring civil service employees based on their political leanings during the recruitment process.
Gary Gensler’s Alleged Illegal Hiring Practice
Allegations brought forward by House Republican lawmakers Jim Jordan, Patrick McHenry, and James Comer could present serious complications for Gensler. According to the report, this alleged practice is a direct violation of the Civil Services Reform Act of 1978. The probe began following an email that implied the SEC might hire Dr. Haoxiang Zhu as Director of Trading and Markets due to his political affiliations.
On May 18, 2021, Gensler reportedly had a call with Dr. Zhu to discuss potential employment at the SEC. Subsequently, Dr. Zhu sent an email stating, “I believe I’m in the right place on the political spectrum, and I’m happy to provide as many details as needed so you feel comfortable.”
Lawmakers Demand SEC Hiring Documents Since 2021
Approximately six months later, on November 19, 2021, the US SEC hired Dr. Zhu, which raises concerns about the consideration of political ideology in the hiring process of bureaucrats. Amidst these concerns, lawmakers have requested that the SEC chair submit all hiring documents and related information from April 17, 2021, onward.
This ongoing investigation could pose a significant challenge for Gensler, especially with the upcoming U.S. elections. Transparency and adherence to federal laws are crucial for maintaining the integrity of such an influential regulatory body.
