Gensler’s bid to control the trade

Trillions of dollars have leaked from the stock markets this year, but regulators are rushing to impose new rules on the markets for no good reason. Two new proposals would expand the Securities and Exchange Commission’s reach over large traders, reducing market liquidity with little benefit beyond giving the SEC chairman more power Gary Gensler.

The SEC proposed a rule this spring that would require many securities dealers to register as broker-dealers or investment companies if they have more than $50 million in total assets. This would require them to submit to stricter federal supervision and join one of the many private groups that maintain additional industry standards, such as the Financial Industry Regulatory Authority (Finra).