U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler testifies before a Senate Banking, Housing, and Urban Affairs Committee oversight hearing on the SEC on Capitol Hill in Washington, U.S., September 14, 2021.
U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler testifies before a Senate Banking, Housing, and Urban Affairs Committee oversight hearing on the SEC on Capitol Hill in Washington, U.S., September 14, 2021. Reuters / EVELYN HOCKSTEIN

KEY POINTS

  • Gary Gensler earns an estimated salary of more than $300,000 per year as SEC head
  • In June, congressmen Warren Davidson and Tom Emmer introduced a bill, titled SEC Stabilization Act
  • One of the provisions of the bill seeks to remove Gensler as the chairman of the commission

A U.S. lawmaker wants to strip Securities and Exchange Commission (SEC) Chairman Gary Gensler of his salary and pay him just a dollar per year instead of hundreds of dollars.

Rep. Tim Burchett, R-Tenn., proposed an amendment to the Financial Services and General Government (FSGG) bill to significantly minimize government spending across the board.

The proposal, endorsed by Burchett, the representative for Tennessee's 2nd congressional district, aims to defund the financial regulator and cut government spending.

"The salary of Gary Gensler, Chairman of 2 the Securities and Exchange Commission, shall be reduced to $1," it suggests.

It is estimated that Gensler earns more than $300,000 per year as the head of the financial regulator.

He has earned criticism from lawmakers, especially for his alleged practices and enforcement actions against several cryptocurrency businesses.

While Gensler has repeatedly said the SEC and its enforcement actions were meant to protect the interest of consumers in the country, many view the regulator's actions as an unfair way to target the crypto industry.

Rep. Burchett is not the only one critical of the SEC and its chairman. Rep. Steve Womack, R-Ark., while introducing the FSGG bill before the House Rules Committee on Monday, said defunding the SEC is a means to curb its regulatory overreach and help it focus on its primary mission.

"Specifically, we turn off rulemakings at the Securities and Exchange Commission that lack proper cost-benefit analysis and aggregate impact analysis," Rep. Womack said. "To be clear, the agencies under our jurisdiction perform important functions; however, many have strayed from their mandate and the results have been a true disservice to the American people."

This is not the first time the SEC and its chairman Gensler have been criticized by the House.

In June, congressmen Warren Davidson, R-Ohio, and Tom Emmer, R-Minn., introduced a bill, titled SEC Stabilization Act, with one of its provisions seeking the removal of Gensler as the chairman of the commission.

"U.S. capital markets must be protected from a tyrannical Chairman, including the current one," Davidson said in a tweet at the time.

"That's why I'm introducing legislation to fix the ongoing abuse of power and ensure protection that is in the best interest of the market for years to come. It's time for real reform and to fire Gary Gensler as Chair of the SEC," the Ohio congressman added.

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