- Lawmakers slam SEC’s Gensler for failing to disclose FTX charges.
- Patrick McHenry and Rep. Bill Huizenga have threatened to resort to a “compulsory process.”
- The lawmakers are allegedly threatening a subpoena.
The Securities and Exchange Commission (SEC) is under fire as two prominent lawmakers have called out the agency’s chair for failing to provide information on the charges against Sam Bankman-Fried (SBF), the founder of crypto exchange FTX.
Chairman Patrick McHenry and Rep. Bill Huizenga have threatened to resort to a “compulsory process” if the SEC fails to produce the requested information. The move has intensified the spotlight on the regulatory body’s handling of the FTX case, which has been marred with allegations of opacity.
“Failure to produce the requested information could result in the Committee considering using compulsory process, if necessary…” pic.twitter.com/e9eFjpxrDb
— Eleanor Terrett (@EleanorTerrett) April 13, 2023
In a letter addressed to SEC Chair Gary Gensler, McHenry, and Huizenga expressed their disappointment with the agency’s apparent reluctance to provide them with information on the charges against SBF. The lawmakers accused the SEC of failing to provide Congress with “timely and meaningful responses to oversight requests.”
The letter further warned of the possible use of “compulsory process” if the SEC withholds the requested information. The latest move by Congress indicates a growing frustration with the SEC’s handling of the FTX case, which has been mired in secrecy and allegations of bias.
Concretely, the congress’ criticism of the SEC stems from the agency’s failure to meet the deadlines for submitting the requested documents, which has hindered the committee’s work. Additionally, the 232 pages of publicly available documents provided by SEC staff were deemed unresponsive to the request, further fueling concerns about the agency’s transparency and accountability.
According to Eleanor Terrett, a journalist, and a producer, the lawmakers are threatening a subpoena without actually using the word subpoena. It is, however, to be seen how the FTX exchange and the SEC respond to these allegations while also protecting the cryptocurrency community.