With the Trump Administration's investment agenda picking up steam, conservative leaders are urging the White House to crack down on the Securities and Exchange Commission (SEC) for stifling growth and overzealous enforcement.
In a letter written and signed by the heads of Americans for Tax Reform, the National Taxpayers Union, Citizens Against Government Waste, and other organizations, Trump's efforts to allow alternative investments in 401(k) plans, such as gold, silver, and cryptocurrency, are hailed as "laudable." However, they suggest that "more must be done to prevent the SEC from obstructing or unwinding your progress."
Specifically, the letter cites former SEC Chair Gary Gensler, who served under the Biden Administration, for leaving "a legacy of overreach and chaos" that impeded up-and-coming markets for digital assets, precious metals, and venture capital.
While they commend the Trump Administration for rescinding much of the Director of Enforcement's authority, they urged for investigations that were opened under Gensler to be dropped, arguing, "These investigations undoubtedly targeted alternative investments and transactions outside the SEC's narrow jurisdiction. All such investigations should be immediately paused and brought to the Commission to ensure that they, too, align with the SEC's priorities under your leadership."
"Until this administration extinguishes the culture of overreach left behind by Chair Gensler, the proverbial fox is still guarding the hen house at the SEC and threatens to stand in the way of the progress you set in motion with Executive Order 14330," the letter concludes, referencing the Executive Order that Trump had issued in August that allowed alternative investments into 401(k)s.
Alternative investments in 401(k)s have gained bipartisan support in Congress, with Representative Jared Moskowitz (D-FL) telling The Floridian, "There should be no limitations on that if that's where they want to have their investment."
Representative Randy Fine (R-FL) similarly supports the effort, commenting, "It's your money. They should be able to invest it in what they want. If we allow people to invest in high-risk products, and those investments turn out ot be back, folks have to be ready to live with the consequences of it."
