Gary Gensler made millions on Wall Street as a partner decades ago. Since then, technological advances have democratized financial markets, giving millions of Americans opportunities to invest as only elites could before. Now, as chairman of the Securities and Exchange Commission, Mr. Gensler, citing no evidence that this inclusive technology harms investors, has proposed a sweeping rule restricting the use of technology by financial-service firms. It would stymie innovation through heavy-handed restrictions and micromanagement.
This is only the latest example of Mr. Gensler’s grandiose regulatory style. He takes on airy theoretical issues and attacks them with broad prophylactic regulations that are long on speculation and paternalism, short on evidence and rational analysis, and heedless of Congress and the Constitution. He claims these measures will head off speculative evils, but they are more likely to throttle the dynamism of U.S. markets.