TechFlow news, according to CryptoSlate, several U.S. Republican lawmakers have jointly written a letter to Securities and Exchange Commission (SEC) Chair Gary Gensler, announcing a coordinated investigation into the SEC to verify whether politically motivated hiring practices exist within the agency. The joint letter was signed by Judiciary Committee Chairman Jim Jordan, Financial Services Committee Chairman Patrick McHenry, and Oversight and Accountability Committee Chairman James Comer. The investigation aims to determine whether the SEC has considered political affiliations when appointing senior staff—a practice that could violate federal laws and undermine the agency's impartiality.
The lawmakers pointed out that under Gensler’s leadership, political considerations appear to have influenced the appointment of senior personnel at the SEC. A specific case cited is the appointment of Dr. Haoxiang Zhu as Director of Trading and Markets in November 2021. Reports indicate that prior to his appointment, Zhu assured Gensler of his political alignment, stating, "I believe I am in the right place politically." Additionally, the lawmakers noted that numerous senior SEC employees have backgrounds in left-leaning organizations such as the AFL-CIO, Consumer Federation of America, and Washington Center for Equitable Growth. This trend has raised concerns about the SEC's impartiality.
