U.S. lawmakers question SEC's hiring practices for political bias, jointly letter Chairman Gensler and initiate investigation

ChainCatcher news, on September 11, multiple U.S. lawmakers sent a letter to SEC Chairman Gary Gensler stating that they have launched a joint investigation into the SEC due to concerns that the agency may have engaged in politically motivated hiring practices.

The letter, signed by Judiciary Committee Chairman Jim Jordan (Republican from Ohio), Financial Services Committee Chairman Patrick McHenry (Republican from North Carolina), and Oversight and Accountability Committee Chairman James Comer (Republican from Kentucky), outlines specific concerns regarding political hiring within the SEC.

The investigation aims to determine whether the SEC considered political affiliations when hiring senior employees, potentially undermining the agency's impartiality and violating federal law.
The evidence cited by the lawmakers suggests that under Gensler's leadership, political considerations influenced the SEC's hiring of senior staff. The letter specifically notes that Dr. Haoxiang Zhu was hired as the Director of Trading and Markets in November 2021.

Reportedly, in an email prior to his appointment, Zhu assured Gensler of his political compatibility, writing in May 2021, "I believe I am in the right position politically," after discussing the role with Gensler.