Chairman, SEC
‘This Is Ridiculous’: Huizenga Slams SEC Chair Gary Gensler For Lack Of Communication With Congress
Last month, Rep. Bill Huizenga (R-MI) questioned SEC chair Gary Gentler about Congressional oversight during a House Financial Service Committee hearing.
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About Gary Gensler
Gary Gensler, former chair of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), has been active in media appearances discussing securities regulation, prediction markets, and artificial intelligence. Regarding the SpaceX IPO, Gensler said the offering represents a shift in corporate governance, noting that insiders will not have a traditional lock-up period and that shareholders cannot sue the company but must go to arbitration. He stated that these risks "have to be understood by shareholders." On the topic of quarterly earnings reports, Gensler opposed a proposal to move to semi-annual reporting, calling it "a solution in search of a problem" and arguing that transparency is important for capital markets. Gensler has been a vocal critic of expanding the CFTC's authority over prediction markets and sports betting. He argued that Congress did not intend for the CFTC to become a national regulator of sports betting when it passed the Dodd-Frank Act, and said states should regulate such activities. He also warned about the risks of AI, stating that "we will have a financial stability event" if banks and trading shops rely on the same AI models, and that threat actors will use AI to probe for vulnerabilities. Regarding insider trading in prediction markets, Gensler said Congress should prohibit government officials and their families from trading on these platforms, calling it "too hard to police this and to enforce it rigorously."
Transcript (18 segments)
✨ AI-enhanced transcript with speaker attribution
C
Chairman McHenry0:00
Someone from Michigan, Mr. Huizenga, is recognized for five minutes.
B
Bill Huizenga0:05
I thank you, Mr. Chairman, and good to be back. I was out of order here because I was in a bipartisan meeting with the Speaker talking about a debt commission, and I hope that that is going to be part of the path forward that we are dealing with government funding and our long-term debt. But I want to move quickly. I want to follow up on Chairman McHenry's line of questions and remarks. I'm not going to belabor the whole situation where we've had public documents that you've given us on our request that's been out there for over seven months, no real information except for that which was FOIA'd by the public. Our request simply seeks to obtain information to better understand the black box of the SEC's activities on climate-related measures and its rulemaking authority. You had said in your own remarks, quote, 'based on authorities granted by Congress.' Well, I dispute the assertion that you've been granted that authority in this particular case, and we are a co-equal branch of government. This is routine congressional oversight. So let's talk a little bit about the commission vote for the climate request. When Chairman McHenry asked, 'Have you scheduled a vote for the commission?' I did not hear an answer on that, or when a vote will be scheduled. I did not hear an answer on that. There are 13,000 emails and documents we've been told that are ready to be produced but are being held up by a provision within Exchange Act Section 24(c). It requires a vote of the SEC commissioners, as your assertion or the commission's assertion. Lawyers differ on that, and it's my understanding that you claim that you don't have the votes necessary on the commission. But Mr. Gensler, I want to ask you this: Are you personally ready to vote yes to produce these documents to this committee?
G
Gary Gensler2:01
We continue to work with your staff and continue to work. We have voted as a commission on the, I think they're called transcribed interviews.
B
Bill Huizenga2:11
Transcribed interviews are very different than the documents that we have requested. I'm asking you not about the commission. Are you voting yes? Will you vote yes on giving that information to our committee as requested?
G
Gary Gensler2:25
Again, as I said, I truly believe in the oversight of this committee, yes, working with the committee.
B
Bill Huizenga2:30
Yes or no? Working with my fellow commissioners, and I want to know what you are going to do, not speaking for anybody else. You, again, yes or no, sir.
G
Gary Gensler2:40
Again, we're working through this at the commission level.
B
Bill Huizenga2:43
Come on. All right, this is ridiculous. So let's assume your answer now is no. So what have you done to try to produce a vote of any sort? Are you talking to your fellow commissioners? Are you whipping them? Are you asking them to vote for that?
G
Gary Gensler2:58
We have ongoing discussions. We, of course, have to have it one-on-one because of the Government in the Sunshine Act.
B
Bill Huizenga3:05
Well, frankly, we have been pretty cloudy over here on the congressional side. I mean, you're fulfilling FOIA requests, but you will not give that same information to Congress. That's a problem. Under 24(c), the delegated authority by the commission allows you to do those FOIA requests without a vote of the commission. Seems to me maybe we need to help you out. Does that seem reasonable? Because here's our problem: What happens if you never get the votes? What's your plan? Ignore Congress?
G
Gary Gensler3:38
We're going to continue working with you.
B
Bill Huizenga3:40
What is your plan? Because we've got a plan. The chairman outlined the plan, and it begins with a P and ends in 'oxy,' and it's not a real fun word that any of us want to fulfill.
G
Gary Gensler3:53
Again, we're continuing to work and trying to get you documents on a regular basis.
B
Bill Huizenga3:58
But you are not. You are giving us publicly available documents. That is not the role of oversight. So, are you open to legislation that would clarify that the SEC is not required to have a full commission vote to comply with a request from Congress or this committee?
G
Gary Gensler4:17
Again, I'd have to have staff look at the legislation. We'd give technical assistance as we give it on other provisions.
B
Bill Huizenga4:24
Yeah, I'm pretty sure we don't need your technical assistance because so far technical assistance has gotten us nothing. So, I enthusiastically support the chair's discussion of using compulsory process. It's shameful that you're hiding behind this 24(c) process, and that the commission is. We are going to have to remedy that apparently based on your lack of cooperation. One last quick question: Did you ever receive a memorandum or agency document in writing assessing the Supreme Court's decision on West Virginia versus EPA on the SEC's rulemaking authority?
G
Gary Gensler5:03
I know that we've had discussions. I don't remember any memo.
B
Bill Huizenga5:07
I've read... I'm going to ask you to follow up in writing with that, Mr. Chairman. I yield back. Thank you.