Wall Street giants backing Kamala Harris have increased pressure on the Democratic presidential candidate to fire top regulators if she wins the White House, according to a report.
Rich-pocketed donors have repeatedly targeted progressive FTC Chairwoman Lina Khan — who they claim has hindered bargaining in the tech sector and other parts of the economy — during conversations with Harris’ staff and at fundraising events. Sources familiar with the matter told Bloomberg,
The pressure to remove Khan has reportedly intensified in recent weeks following public calls for her removal in July by billionaire donors IAC Chairman Barry Diller and LinkedIn co-founder Reid Hoffman, who both said Khan was being ousted. “Waging war on American trade.”
President Joe Biden chose Khan, 35, to head the agency in 2021. She has been a favorite of progressive lawmakers such as Senator Elizabeth Warren, who has called on the called his appointment “huge news”, But many from Wall Street to Silicon Valley have expressed concern about the lack of deals during his tenure.
Still, sources told Bloomberg that major technology donors will likely continue contributing cash to Harris's campaign.
Harris' campaign has not given donors a clear answer about the vice president's opinion of Khan, and campaign supporters are not withholding their donations based on Khan, sources said.
Harris's campaign did not immediately respond to requests for comment.
Meanwhile, SEC Chairman Gary Gensler is being scorned by both Democratic and Republican donors, sources told Bloomberg.
Gensler — whose term ends in 2026 — has been vocal in calling for tighter regulation for the industry.
“Shark Tank” investor Mark Cuban — who has endorsed Harris — told CNBC this week The SEC “needs to change.”
Cuban said he asked Harris’ team to “put my name forward to the SEC.”
Former President Donald Trump said during the 2024 Bitcoin Conference that he would fire Gensler if the Republican candidate wins in November.
The FTC declined to comment and the SEC did not immediately respond to requests for comment.
Jill Fish, a professor at the University of Pennsylvania Law School, told Bloomberg that both Khan and Gensler have led their government agencies with “pretty aggressive” agendas.
“They didn't want to play it safe,” Fish said. “They didn't want to compromise.”
Although the FTC and SEC were historically created to operate outside of the political realm, those boundaries are fading.
“At this point, it's not just about what makes the most sense to do from a market and industry perspective, it's about what makes sense politically and what will make political leaders happy — and that's a very difficult path to take,” Fish said.
Under Khan’s leadership, the FTC has fought to block Microsoft’s acquisition of video game company Activision Blizzard and a $25 billion grocery store merger between Kroger and Albertsons. Analysts previously told the Post that this probability is diminishing,
Much of the frustration with Gensler stems from the SEC’s efforts to crack down on the crypto industry, which he has described as a blatant violation of securities laws.
