No evident opposition to his confirmation to the SEC post has emerged, and approval by the full Senate is expected. Gensler was a leader and adviser of Biden’s presidential transition team responsible for the Federal Reserve, banking issues and securities regulation. Biden’s selection of Gensler to lead the SEC signals a goal of turning the Wall Street watchdog agency towards an activist role after a deregulatory stretch during the Trump administration. Gensler has experience as a tough markets regulator during the 2008-2009 financial crisis as CFTC chair. We’ve seen what happens when markets don’t have real safeguards, and most people are left to fend for themselves – just look at the electricity market in Texas.” “And it means working with other agencies – the banking regulators – to head off growing problems before they become emergencies that hurt the economy. “That means upgrading climate-risk disclosure requirements that are out of date, punishing misconduct and enforcing the protections on the books,” said the committee chair, Senator Sherrod Brown, D-Ohio. ![]() And above all, it means making sure our markets serve the needs of working families.”ĭemocratic senators urged Gensler to take up requiring corporations to fully disclose their climate-change risks and political spending, and punishing companies for violations of securities laws. “It means promoting efficiency and competition, so our markets operate with lower costs to companies and higher returns to investors. That will enable people “to invest with confidence and be protected from fraud and manipulation,” he said. If confirmed to the SEC post, Gensler said, he would work to strengthen transparency and accountability in the markets. Robinhood offers commission-free trading, but critics say customers pay another, hidden price because Robinhood provides their data on buying and selling to Wall Street firms. Sign up for The Gleaner’s morning and evening newsletters. Lawmakers have asked whether Robinhood is doing enough to communicate the risks to its users. Critics have accused Robinhood of trying to lure young people with little or no experience trading stocks by including features on its trading platform that resemble gaming apps – like showering users’ screens with virtual confetti when they make a trade. The GameStop episode prompted lawmakers to raise concern about the business model of Robinhood, the online trading platform that hosted a wave of trading in GameStop. “What does it mean when you have behavioural prompts to get investors to do more transactions? We’re going to have to study that and think about it,” Gensler told the panel. Among the issues to be examined, he said, is the use of “behavioural” technology in stock-trading apps. ![]() “At the core, it’s about protecting investors,” Gensler said. The trading frenzy in shares of the struggling video-game retailer lifted their price 1,600 per cent in January, though they later fell back to earth after days of wild price swings. He was asked about the roiling stock-trading drama involving GameStop shares that has spurred clamour for tighter regulation of Wall Street. Gary Gensler, who was a chair of the Commodity Futures Trading Commission, CFTC, during the Obama administration, testified by video for his confirmation hearing by the Senate Banking Committee. United States President Joe Biden’s choice to head the US Securities and Exchange Commission, SEC, told Congress on Tuesday that the agency should address how to protect investors who use online stock-trading platforms with flashy tech gimmicks that entice them to trade more.
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