Kamala Harris, the Democratic presidential nominee, is facing mounting pressure from Wall Street magnates to remove top regulators if she secures a victory in the presidential race, as per a report.
These influential donors, known for their substantial financial contributions, have been vocal in their criticism of Lina Khan, the progressive chair of the Federal Trade Commission (FTC). They argue that Khan's policies have stifled deal-making in the tech industry and other economic sectors.
According to the New York Post, these donors have expressed their concerns during discussions with Harris' team and at fundraising events. The campaign to oust Khan has gained momentum in the wake of public calls for her dismissal in July by billionaire donors Barry Diller, Chairman of IAC, and Reid Hoffman, co-founder of LinkedIn. They accused Khan of "waging war on American business."
In 2021, President Joe Biden appointed Khan, 35, to lead the FTC. While her appointment was hailed as "tremendous news" by progressive lawmakers like Senator Elizabeth Warren, many from Wall Street to Silicon Valley have expressed dissatisfaction over the lack of deals under her leadership. Despite this, major tech donors are expected to continue supporting Harris' campaign financially.
The stance of Harris' campaign on Khan remains unclear, and donors are not withholding their contributions based on Khan, sources revealed. The campaign has yet to respond to requests for comment.
Simultaneously, Gary Gensler, the chair of the Securities and Exchange Commission (SEC), is reportedly unpopular among both Democratic and Republican donors. Gensler, whose term ends in 2026, has been an advocate for stricter industry regulations. Mark Cuban, a "Shark Tank" investor who supports Harris, recently stated that the SEC "needs to change" and has expressed interest in being considered for the SEC.
Former President Donald Trump, speaking at the 2024 Bitcoin Conference, declared that he would dismiss Gensler if a Republican candidate triumphs in the upcoming election. The FTC declined to comment, and the SEC has not yet responded to requests for comment.
Jill Fisch, a professor at the University of Pennsylvania Law School, told Bloomberg that both Khan and Gensler have pursued "fairly aggressive" agendas at their respective agencies. "They weren't looking to play it safe," Fisch said. "They weren't looking to compromise."
The FTC and SEC, traditionally designed to function independently of political influence, seem to be increasingly affected by political considerations. "Right now it's no longer what's most sensible to do from a market and industry perspective, but what's politically salient, and what's going to please political leaders and that's a very tough path to navigate," Fisch noted.
Under Khan's leadership, the FTC has opposed Microsoft's acquisition of video game company Activision Blizzard and the $25 billion merger between grocery chains Kroger and Albertsons. Meanwhile, much of the dissatisfaction with Gensler stems from the SEC's attempts to regulate the crypto industry, which he has characterized as blatantly violating securities laws.
Login