The Senate voted 53-45 Wednesday to confirm Gary Gensler as chairman of the U.S. Securities and Exchange Commission (SEC).
Gensler succeeds Trump SEC appointee Jay Clayton, who stepped down in December. Allison Herran Lee has been Acting Chair in the interim.
“A warm congratulations to Gary Gensler on his Senate confirmation to become Chair of the SEC. He will be joining a dedicated staff that works tirelessly day in and day out on behalf of investors and our markets. We welcome him back to public service and look forward to working together to execute our vital mission,” read a joint statement today from SEC Commissioners Lee, Hester M. Peirce, Elad L. Roisman and Caroline A. Crenshaw.
The majority of Republican Senators opposed Gensler’s nomination, arguing that under his leadership, the agency could overstep its authority based on his appetite for regulating company disclosure on environmental, social and governance (ESG) issues.
“I’m concerned he will cause the SEC to use its regulatory powers to advance a liberal social agenda focused on issues such as global warming, political spending disclosures, and racial inequality and diversity. Securities laws are not the appropriate vehicle to address these topics,” said Senator Pat Toomey (R-PA), ranking Republican on the Senate Banking Committee, in a statement Tuesday.
Toomey was one of the 10 Republicans voting against advancing Gensler’s nomination to the full Senate, saying at the time Gensler provided no assurances he would not use the SEC to pursue a liberal social agenda.
On the other side, Sen. Sherrod Brown (D-OH), Chairman of the Senate Banking Committee, has stated that Gensler’s passion to serve and exceptional qualifications were obvious.
“Mr. Gensler is an experienced public servant with a strong record of holding Wall Street accountable,” Brown said in a statement Tuesday. “And he will lead the SEC at a time when it’s become more and more obvious to most people that the stock market is detached from the reality of working families’ lives.”
SEC has a full plate
It appears Gensler will be taking over at a time when the SEC has no shortage of key issues to address, as many expect the Biden Administration to be pushing an ambitious financial regulatory agenda.
In addition to topics such as fiduciary obligations/Regulation Best Interest and ESG disclosures, the SEC is also likely to address cryptocurrencies (and approving Bitcoin Exchange Traded Funds in particular), fallout from the GameStop short squeeze, commission-free trading apps and the recent surge in private companies going public through “Special Purpose Acquisition Companies” (SPACs).
The Insured Retirement Institute (IRI) and the American Council of Life Insurers (ACLI) were quick to issue statements of congratulations and eagerness to work together with the SEC after today’s vote.
“IRI congratulates Gary Gensler upon his confirmation as SEC Chair,” said Wayne Chopus, IRI President and CEO. “With its tripartite mission of protecting investors, maintaining fair, orderly, and efficient markets, and facilitating capital formation, the Commission will surely play a critical role in helping the nation and the economy recover from the economic consequences of the pandemic. IRI looks forward to working with Chair Gensler and the Commission to address the retirement security challenges America’s workers and retirees are facing as they seek to save for and produce sustainable lifetime income during their retirement years.”
ACLI President and CEO Susan Neely added, “The SEC plays an important role in protecting consumers preparing for retirement. Across the country, state policymakers are adopting or considering new laws and regulations that align with the SEC’s Regulation Best Interest and provide consumers with a strong network of federal and state protections.
“We look forward to working with Chairman Gensler and the other SEC commissioners to support measures that safeguard consumers’ interests and help ensure all Americans have access to tools and resources to make informed decisions about their financial futures.”
SEE ALSO:
- Biden Taps ‘Tenacious Regulator’ Gensler to Lead SEC
- Bitcoin Inching Closer to 401ks
- Bitcoin ETF: Why is the SEC Dragging Its Feet?
Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.
