U.S. SEC chair probed by House Republicans over political hiring

In a letter dated September 10, 2024, three United States House Republicans asked the U.S. SEC’s chair, Gary Gensler, to turn over information about the agency’s hiring process. They cited evidence of political ideology-based recruitment. According to the letter, the U.S. SEC could have violated the Civil Service Act of 1978 if the allegations were true.

The letter revealed that the continuing oversight of the U.S. SEC by the Committees on the Judiciary, Financial Services, and Oversight and Accountability had unveiled the possibility of hiring civil servants based on their political affiliations.

As per the letter, publicized email correspondence suggested that Dr. Haoxiang Zhu, hired on November 19, 2021, might have secured the U.S. SEC’s Director of Trading and Markets position due to his “placement on the political spectrum.” 

The U.S SEC’s hiring process could be politically biased 

#US House Republicans are investigating #SEC Chair Gary #Gensler for alleged politically motivated hiring practices.

#GOP lawmakers claim that the SEC may be hiring based on political ideology, citing emails suggesting that Gensler's decision to hire Dr. #HaoxiangZhu was… pic.twitter.com/uptS7HIjGe

— TOBTC (@_TOBTC) September 12, 2024

According to the letter, the U.S. House Republicans were investigating the U.S. SEC’s chair for alleged politically motivated hiring practices. The GOP lawmakers claimed that the U.S. SEC could be hiring civil service employees based on their political ideologies, citing emails suggesting that Gensler’s decision to hire Dr. Zhu may have been influenced by his political inclinations. 

In the letter, Gensler was asked to provide documents and communications related to the U.S. SEC’s hiring process by September 24. The letter revealed that a call between Gensler and Dr. Zhu on May 18, 2021, discussing Dr. Zhu’s potential employment at the U.S. SEC was followed by an email from Dr. Zhu affirming his “political suitability” for employment under Gensler stating that he (Dr. Zhu) was favorably positioned politically.

“I believe I’m in the right place on the political spectrum, and I’m happy [to] provide as many details as needed so you feel comfortable.”

–Dr. Haoxiang Zhu 

The letter disclosed that Dr. Zhu was hired by the U.S. SEC six months following the email correspondence. According to the House Republicans, the U.S. SEC appeared to have unlawfully considered Dr. Zhu’s political ideology, and the conclusion reinforced claims that the U.S. SEC favored bureaucrats from left-leaning organizations when hiring individuals for senior roles at the agency.

The presidential election outcome may not have a great impact on crypto

Although some crypto enthusiasts agreed that Trump was better for the crypto industry than Kamala, it did not mean crypto would go to zero if the Democrats won. Taiki Maeda, founder of The Humble Farmer, cited the 2021 bull market as proof that it did not matter which side of the political divide the winners of the upcoming U.S. presidential elections come from.

According to Maeda, the crypto industry’s claim that it needed Trump was admitting that it was fragile, but the reality pointed to the inevitability of crypto regardless of who won.

Speaking at the Bitcoin conference in Nashville, Trump had promised to fire Gensler on day one upon resuming office as the U.S. president in November. Additionally, Trump declared that he would make friendlier crypto regulations, make the U.S. a crypto hub, and buy Bitcoin for a U.S. strategic reserve.

The founder of Tusk Venture Partners, Bradley Tusk, asserted that the odds were against Gensler keeping his job as the U.S. SEC’s chair, whether Trump or Harris won in the November elections. Tusk claimed this was great for crypto regulations because no one could “literally be worse than Gary Gensler.”