US Senate approves Gensler as SEC chairman

The US Senate has confirmed Gary Gensler to become the next chairman of the US Securities and Exchange Commission (SEC), where he is expected to pursue more regulatory oversight and climate disclosure from publicly traded companies.

The Senate today voted 53-45 in favor of Gensler leading the SEC, a powerful agency that serves as the nation's Wall Street watchdog. The confirmation will give Democrats a 3-2 majority on the SEC, giving Gensler the power to revisit regulations finalized under former President Donald Trump that critics say allow banks and other large corporations to take on excessive levels of risk.

Gensler at his confirmation hearing said publicly trading companies should have to disclose climate risks, and potentially their mix of energy use, if it is material to investors. That could align with an initiative started by the SEC's acting chair, Allison Herren Lee, who ordered the agency to "enhance its focus" on climate disclosure and update decade-old guidance on the issue.

Democrats are already putting pressure on the SEC to revisit a watered-down disclosure rule for oil and mining companies that was initially required under the 2010 Dodd-Frank financial overhaul law. Gensler has not spoken specifically about whether he plans to take another look at that rule.

Gensler was executive at the investment bank Goldman Sachs before moving to public service and serving as chairman of the US Commodity Futures Trading Commission (CFTC) from 2009-14. President Joe Biden has yet to nominate anyone to fill a vacancy at the CFTC, which is now split between two Democrats and two Republicans.

By Chris Knight