The U.S. Senate has allowed Gary Gensler to chair the Securities and Exchange Commission, allowing President Biden to be elected as Wall Street chief sheriff as it faces countless market threats.
Gensler, whose nomination was approved on Wednesday by a vote of 53 to 45, is ready to face anything from the GameStop Corp commercial frenzy to the flood of specialty companies and the collapse of Archegos Capital Management. As president, he will also face strong pressure from progressive Democrats, who want him to quickly tighten control over the Trump administration.
The role of market watcher is familiar to 63-year-old Gensler. Under the Obama administration, he chaired the Commodity Futures Trading Commission, setting new rules for derivatives accused of exacerbating the 2008 financial crisis. He is well versed in the industry as he was one of the youngest people to partner with the Goldman Sachs Group early in his career.
At the SEC, he will lead a vast bureaucracy where most workers work from home for more than a year due to the epidemic. In a joint statement following his confirmation, the agency’s four current commissioners welcomed him aboard. When Gensler is sworn in, the SEC will return in full force with five members, giving the Democrats a majority.
He is widely expected to face corners of the financial industry as he bypasses the policies pursued by Ay Clayton, who led a regulator in much of the Trump administration. Still, powerful trading groups, including the Securities Industry և Financial Markets Association, the Investment Institute, the American Securities Association, the Association of Managed Funds, the Investment Advisers Association, wished him well and promised to cooperate.
The issues that lawmakers expect Gensler to address were raised during his March 2 approval hearing. The senators asked him what he thought about Bitcoin, a popular trading platform such as Robinhood Markets, whether public companies were properly identifying climate change business risks ներքին the internal workings of the stock market.
Ohio Democrat Sherod Brown, who chairs the Senate Banking Committee, said he expects Gensler to focus on protecting retail investors.
“Mr. Gensler will bring the SEC back to the people who are forcing this country to work, to make sure markets are a way for families to save, to invest in their children’s education, a down payment, a secure pension, not a game for hedge fund managers. “Where workers are always losing,” Brown said in a statement following Wednesday’s vote.
Gensler garnered the support of several Republican senators, including Susan Collins of Maine, but he was largely party-affiliated. The split means he certainly faces a backlash from GOP lawmakers as he moves to implement parts of his agenda at the agency.
If Gensler keeps its promises to reconsider whether firms like Robinhood improperly equate trading with video games, selling broker-dealer orders to Citadel Securities, or the conflicting practices of other market makers, there may be.
The fierce trading of GameStop և shares in January is likely to play a big role in Gensler’s agenda. The SEC is expected to publish a report on the incident soon, and is examining the signs of market manipulation separately. The flood of SPAC-related stock sales has also drawn much attention to the SEC, with agency officials warning in recent weeks that the offers are becoming risky for retailers.
The capture of Bill Hwang “Archegos” last month was another shock that was expected to provoke a regulatory response. His misguided bets cost the banks billions of dollars and raised questions about transparency as he managed to hide his prices through exchanges. The episode also revealed the dangers of family offices, which had an explosive growth, while had less monitoring than hedge funds and other investment firms.
Gensler is expected to continue SEC Chairman-in-Office Alison Heren Lee’s focus on environmental, social and governance issues. Fan enthusiasts are also optimistic that Gensler, who taught digital currency at the Massachusetts Institute of Technology, will push the SEC to be tougher. The main hope is that the agency will quickly establish a Bitcoin exchange fund during his tenure.
For other similar articles, visit us at bloomberg.com
© 2021 Bloomberg LP: