The U.S. Securities and Exchange Commission (SEC) is reportedly not “reauthorized” since 2015, per the U.S. House Committee on Financial Services (HFSC). As a result, the U.S. SEC is poised to undergo scrutiny from the Congress in 2023.
Breaking the impending SEC scrutiny news, FOX Business reporter Eleanor Terrett tweeted:
The @SECGov is set to face more scrutiny from Congress this year as the @FinancialCmte points out the agency has not been “reauthorized” since 2015. Reauthorization is the process by which Congress reviews and makes changes to a government agency or program in order to make sure
— Eleanor Terrett (@EleanorTerrett) February 2, 2023
Per Terrett, the SEC got over $2 billion in funding for FY 2023—even with a lapsed (as of FY 2015) authorization. Per Terrett, the onus is on the SEC Chairman Gary Gensler to convince the HFSC that the SEC
is functioning properly and the amount of money received in funding this year (and what he’s asking for next year) is justified.
She states the HFSC’s step to reauthorize the SEC is an initial sign of the GOP’s plan to significantly crack down and reign in the agency.
The HFSC oversight plan states the committee will scan the various facets of the U.S. SEC operations, activities, and initiatives.
Terrett explained the “reauthorization” process involves reviews by Congress to initiate changes in a government agency or program to ensure it runs in alignment with its “purpose.” She says it ensures that the agency or program is operating in an efficient manner to accomplish its objectives. At the outset, it is also vital to measure the suitable government funding the agency must get.
The U.S. SEC failed to manage, control, and prevent the FTX debacle. But the securities regulator anticipates a win in the LBRY and XRP cases. In related SEC news, the SEC has tabled a proposal to strengthen trading rules for agency employees. The move pertains to prohibiting the U.S. SEC staff-led short sales, stock trades, and derivatives transactions.
