Axios interview: SEC Chair Gensler reflects on three years
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Axios' Hope King during an interview with SEC chair Gary Gensler at the Money20/20 conference today. Photo: Bryan Bedder
Gary Gensler, chair of the U.S. Securities and Exchange Commission, said "I sleep fine at night" when asked Monday if he fears for his job after the election next week.
Why it matters: Gensler's ambitious rule-making over the past three years has stoked the ire of broad swaths of the traditional financial sector as well as digital and crypto industries who are eager to see him out.
- The latter groups have amassed considerable sway over both candidates, with political donations from or supporting the cryto industry reaching around $190 million.
- Prominent entrepreneurs like Mark Cuban have also called for the SEC to change.
- Former President Trump has vowed to fire the chair while rumors are swirling that major Democratic donors are pressuring Kamala Harris' team to replace him.
Yes, but: Gensler is unfazed.
What he's saying: "This is a job where every day is about helping investors," he told Axios on Monday afternoon during an event in Las Vegas.
- "There's some that are going to be the market intermediaries, people that are operating the stock exchanges or the clearing houses, the brokers and investment advisors that have different incentives than somebody like I do," said Gensler.
- He conceded that if he were still at Goldman Sachs, he might not like some of the things he's doing.
- "But my job is for 330 million Americans."
Context: Of the more than 50 "projects" ranging from greater ESG disclosures and one-day stock trade settlement that Gensler set out to tackle on his agenda, the SEC has already completed about 45 of them, he noted.
- The main goal, according to Gensler, is about driving lower cost and risk for investors — but the rules have been met with growing opposition.
Zoom in: Republican-led states and major trade groups, including those representing hedge funds, private equity and private credit, have hit back at the SEC.
- They've alleged in lawsuits that the SEC has overreached and that its proposed rules would increase their costs and complexities.
- In a small handful of cases, their appeals have been successful at overturning or pausing rule implementation.
Zoom out: While these protests may be vociferous, there's an equally deafening volume of grievances the SEC sees.
- The SEC, says Gensler, receives between 40,000 and 50,000 tips, complaints and referrals every year.
- The agency also receives about 15,000 whistle blower tips.
Between the lines: "Markets are not going to work unless you have an active cop on the beat," he said.
What we're watching: Past SEC chairs have resigned when their party loses the presidential election on or before inauguration.
- When asked if he sees himself as a traditional SEC chair, Gensler said he won't comment on an election.
- "Traditionally, presidents get to decide who chairs the SEC, and that's part of democracy."
1 fun thing: When asked what went through his mind when Trump vowed to fire him, Gensler said his daughters found it interesting and sent him a few texts, "but other than that, I thought that's what presidents do to their entire cabinets as well, so I just thought 'that's part of democracy."
Editor's note: This article has been updated with new details throughout.
