The U.S. Securities and Exchange Commission (SEC) is undergoing a leadership transition with the appointment of Paul Atkins as the new chairman following Gary Gensler. Before stepping down, Gensler made several significant appointments within the agency, which have been criticized by former SEC Internet Enforcement Director John Reed Stark.

Issues with Gary Gensler’s Appointments

In the weeks leading up to his departure, Gensler appointed individuals for senior positions, reinforcing the presence of like-minded individuals within the SEC. John Reed Stark remarked that Gensler is trying to manage the SEC’s Enforcement Division from the shadows, citing the promotion of five personnel to senior roles within the division.

While Stark acknowledges that promotions themselves are not inherently negative, he criticizes their speed and motivation. He points out that there are very few senior positions available at the SEC, which are typically filled through lengthy processes spanning a decade. The nature of these promotions as career civil service positions complicates the removal of personnel.

Expectations from the Sector

Stark further indicated that four of the five promoted individuals had recently led major