SEC chair Gary Gensler plans to overhaul the stock market and comes armed with 49 proposals. He appears to love regulations and doesn’t want to disappoint the Biden administration. Gensler often sounds like socialist Elizabeth Warren and there is a reason for that – she is one he wants to please.
His regulatory agenda is like nothing ever seen in the SEC’s 87-year history. Gensler plans to put his touch on crypto, overhaul equity markets and bolster ESG.
There is a lot of opposition on Wall Street to Gensler’s pledge to overhaul the equity market’s plumbing. He is doing it in response to this year’s meme-stock mania.
He wants to route stock orders to auctions. Oh, what could go wrong.
Crypto firms bristle at Gensler’s contention that they are peddling securities, which would trigger SEC oversight for the unregulated industry.
He’s been similarly aggressive on agency enforcement cases, which can tank share prices, spur fines and trigger embarrassing publicity.
Executives who’ve met with SEC officials have been privately cautioned that the market structure rules being developed may be extreme, according to people familiar with the matter.
After He Overhauls Equity Markets, He Plans to Push ESG
“I’ve also asked staff to consider the ways that funds are marketing themselves to investors as sustainable, green, and ‘ESG’ and what factors undergird those claims,” he said.
Appearing to be a micromanager, Gensler wants to know more about how corporations interact with their employees. He wants to know more about “workforce turnover, skills and development training, compensation, benefits, workforce demographics including diversity, and health and safety.”
Is that his job?
House Republicans have warned the SEC not to impose a requirement for climate risk disclosure, claiming the SEC is overstepping its bounds. [It would be another way to destroy oil and gas]
The legal issue is materiality: Are ESG disclosures material to investment returns?
Gensler believes they are and that everything the SEC asks for doesn’t necessarily have to be “material” to require disclosure.
Big surprise! Gensler’s a control freak who wants to please socialists and completely overhaul our financial system while pushing Klaus Schwab’s ESG.