The SEC Continues Financial Overreach
Will the Supreme Court need to clean up this regulatory mess, too?
Once again, the Wall Street Journal writes about regulatory overreach; once again, the WSJ write about writes about the Securities and Exchange Commission; once again the WSJ writes about Gary Gensler activities; finally, once again, the WSJ writes about Gary Gensler bringing more and more financial activity (including ESG) under SEC regulation and enforcement.
Giving Gensler and the SEC that much pure power, the Green House should consider assigning the 76,000 new employees to the SEC, not the IRS
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“The need for this new regulation isn’t clear. The SEC claims that enrolling more firms as dealers would help it better trace and understand market shocks, because registered firms are required to report trades more rigorously. It also says the rules would blunt volatility by subjecting more firms to dealers’ market-maintenance requirements. Yet these requirements currently apply only to “primary dealers”—those that partner with the Federal Reserve to buy Treasurys on first offer.
U.S. markets have on all the evidence been working well despite sharp monetary policy changes. The real purpose here seems to be the one that’s animated Mr. Gensler’s SEC tenure thus far: bringing as much financial activity as possible under his agency’s scope.”
Two new proposals would broaden the Securities and Exchange Commission’s reach over large traders, reducing market liquidity with little benefit. https://www.wsj.com/articles/the-gary-gensler-bid-to-control-trading-securities-and-exchange-commission-rules-11658872217