Senate Republicans have introduced new legislation that would require the Chair of the Securities and Exchange Commission (SEC) to testify semi-annually before Congress, aiming to enhance “transparency and accountability.” The proposed legislation, titled the Empowering Main Street in America Act, was presented shortly before the planned Senate Banking Committee hearing with current SEC Chair Gary Gensler was postponed.
The hearing’s delay follows Gensler’s separate Tuesday appearance before the House Financial Services Committee, where he faced criticism from both Democratic and Republican members. Senate Banking Committee Ranking Member Tim Scott criticized the postponement in a statement, indicating that this last-minute cancellation reflects underlying issues within the SEC under Gensler’s leadership.
Senator Scott condemned Gensler’s three-year tenure, suggesting that his regulatory approach has negatively impacted businesses by increasing paperwork, reducing access to capital, and harming American retirement savers. Scott emphasized that the Senate Banking Committee should be able to hold Gensler accountable given his “aggressive regulatory agenda.”
The postponement decision was made in consultation with Banking Committee Chairman Sherrod Brown, with a new date to be determined. According to additional sources, the postponement was due to scheduling conflicts.
Under existing law, bank regulators are required to testify before Congress per the Dodd-Frank Act, which followed the 2007-2008 financial crisis. The act does not presently encompass the SEC. Scott, along with nine other Republicans on the Senate Banking Committee, seeks to amend this.
The proponents of the new legislation argue that it would pivot the SEC back to its primary roles of facilitating capital formation, protecting investors, and maintaining fair, orderly, and efficient markets, instead of imposing new regulatory burdens that could restrict opportunities, deter new investors, and stifle innovation and competition.
The senators argue that increased oversight is essential for the SEC to fulfill its mission effectively. They claim that the current environment under the SEC has become increasingly hostile for investors and businesses, thus justifying the need for the proposed Empowering Main Street in America Act to enforce biannual testimonies by the SEC Chair.