U.S. House of Representatives members Patrick McHenry and Bill Huizenga have expressed their dissatisfaction with SEC Chair Gary Gensler’s “unacceptable” failure to provide information regarding charges against FTX founder Sam Bankman-Fried.
The two legislators have jointly written Gensler a letter asking that the SEC provide a staff recommendation paper and other relevant data about the case.
McHenry and Huizenga warn in their letter that if the SEC does not comply with their request for information, mandatory actions may be imposed. This follows a prior attempt to get the required records, which Chair Gensler has thus far failed to produce.
”Thank you for your April 11 letter related to your efforts to comply with our document request. Unfortunately, your commitment in the letter to “continue [the] ongoing review of Commission records and supplement the production of responsive materials and information, as appropriate’ is insufficient.”The letter from Patrick McHenry and Bill Huizenga.
They stated that they sent Gensler a letter requesting documents related to charges filed by the Securities and Exchange Commission (SEC) against Sam Bankman-Fried. Ignoring the deadline, the SEC actively blocked Committee staff from discussing the request with anyone in the Office of the General Counsel until Chairman Huizenga formally requested a conversation with the SEC General Counsel.
Warning of Coercive Measures if SEC Fails to Provide Requested Information
Finally, they have issued a stern warning to SEC Chair Gary Gensler, stating that coercive measures may be taken if necessary to obtain the requested information regarding charges against FTX founder Sam Bankman-Fried. The lawmakers anticipate that the staff recommendation note, as well as any other essential facts, will be provided on time and in a condensed form by 5:00 PM on April 17th.
The delegates underline the significance of openness and accountability in their letter, expressing their disappointment with the SEC’s prior attempts to deliver the required information. They warn that if the Commission does not comply with their demands, the Committee may consider instituting mandatory measures to guarantee full transparency. This news sends a strong message to the SEC that legislators will not allow any more delays in gathering the facts needed to conduct a fair and complete inquiry.