SEC Chair Gary Gensler in Big Trouble Over Alleged Illegal Hiring

The recent probe into the United States Securities and Exchange (SEC) chairman Gary Gensler has garnered significant attention from crypto enthusiasts. According to a report, Gensler and his agency may be violating federal law by favoring civil services employees based on political leanings during the recruitment process.

Gary Gensler’s illegal Hiring practice

This allegation by the House Republican lawmakers Jim Jordan, Patrick McHenry, and James Comer could spell serious trouble for Gensler. Based on the report, this illegal practice is a violation of the Civil Services Reform Act of 1978. The probe was initiated by an email that suggests the SEC might hire Dr. Haoxiang Zhu as Director of Trading and Markets due to his political connections.

Based on the report, on May 18, 2021, Gensler had a call with Dr. Zhu to discuss his potential employment at the SEC. Later, Dr. Zhu sent an email stating,

“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.”

Lawmakers Demand SEC Hiring Docs Since 2021

Later six months, the US SEC hired Dr. Zhu on November 19, 2021, which hints at the possibility of considering an applicant based on political ideology while hiring the bureaucrats. While examining Dr. Zhu’s hiring, lawmakers have requested the SEC chair submit the hiring documents and other information since April 17, 2021.

However, this allegation and probe are intense and may pose a significant challenge for Gensler before the U.S. election.

Also Check Out: Big Win for Crypto? SEC Admits Error on Digital Asset Classification