The Senate Banking, Housing, and Urban Affairs Committee voted 14-10 today to advance President Joe Biden’s nomination of Gary Gensler to lead the U.S. Securities and Exchange Commission (SEC).
Gensler is now one step away from being confirmed, which is a vote from the full Senate. The Senate is expected to confirm Gensler’s nomination next week.
Two Republicans, Sens. Mike Rounds (R-SD) and Cynthia Lummis (R-WY), joined 12 Democrats in supporting Gensler’s nomination.
U.S. Senate Banking Committee Ranking Member Pat Toomey (R-PA) was one of the 10 Republicans voting against advancing Gensler’s nomination to the full Senate.
“There’s no doubt that Mr. Gensler knows a lot about securities markets. But based on his record, I’m concerned he will stray from the SEC’s tradition of bipartisanship by using the agency’s regulatory powers to advance a liberal social agenda on issues such as climate change, political spending, and racial inequality,” Toomey said in a statement today. “The securities laws are not the appropriate vehicle to address social and cultural issues.”
Toomey added that when he pressed Gensler on the subject, Gensler provided no assurances he would not use the SEC to pursue a liberal social agenda.
“I also asked him whether a company’s financially insignificant spending on energy or political advocacy constitutes material information that must be disclosed to investors,” Toomey said. “In response, he essentially indicated that if a large number of politically motivated activist investors want to know certain information—for example, information related to climate change or political spending—then it’s material, even if it’s financially insignificant.”
Based on Gensler’s answers to questions from other Senators about recent stock market volatility, Toomey added, “I’m also concerned that he’s sympathetic to the paternalistic push by some on the Left to impose regulations that would make investing more expensive and difficult for retail investors.”
On the other side, Sen. Sherrod Brown (D-OH), Chairman of the U.S. Senate Committee on Banking, said Gensler’s passion to serve and exceptional qualifications were obvious.
“Mr. Gensler’s leadership of the SEC is critical to ensuring that the agency meets the evolving needs of the people whose hard-earned savings are invested in the markets,” Brown said in a statement. “As more Americans save and invest for the future, the SEC’s mission to protect them is critical to build faith in our markets, and make them fair. Mr. Gensler’s tenure as CFTC Chair and as a Treasury Department official provide him with the experience and insights to be an effective SEC Chair.”
In somewhat of a surprise move, Gensler’s nomination recently received the support of the U.S. Chamber of Commerce, the country’s largest business lobbying organization.
“The Chamber has a history of working constructively with Mr. Gensler, including on issues where we may disagree, and expect he will be a balanced leader of the SEC and strong supporter of competitive capital markets,” said Chamber Executive Vice President & Chief Policy Officer Neil Bradley, in a March 8 letter to the committee.
With Gensler at the helm, it appears the SEC may take a much tougher stance on Wall Street under the Biden Administration than it did under the Trump Administration. Gensler is expected to pivot from his predecessor Jay Clayton’s more Wall Street-friendly policies in favor of a strong focus on investor protection.
SEE ALSO: