On September 14, U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler testified before the Senate Banking Committee at a hearing titled “Oversight of the U.S. Securities and Exchange Commission.” In his testimony, Chair Gensler highlighted SEC priorities including the regulation of cryptocurrency and how the agency is examining disclosures around climate risk, human capital, and cybersecurity. The issue of requiring various standardized and mandatory disclosures for publicly traded companies was prevalent throughout the hearing. Chairman Sherrod Brown (D-OH), and Senators Mark Warner (D-VA), and Raphael Warnock (D-GA) all voiced their support for employee disclosures related to compensation and diversity. Chair Gensler supported this effort, explaining that human capital is often a firm’s most valuable asset, and he noted the SEC is actively seeking public comment on these disclosure issues and will draft any guidance based on feedback the SEC receives. Ranking Member Pat Toomey (R-PA) and Senator John Kennedy (R-LA) both spoke in opposition to mandatory disclosures, raising concerns about their financial relevance and politicization.

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