U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler says the regulator needs extra funding to keep up with emerging capital markets like crypto. He has supported President Biden’s request to add $2.4B in funding to the SEC to help crack down on crypto “misconduct.”
SEC seeking funding to continue cracking down on crypto
The U.S. SEC is all out to ‘streamline’ the crypto space by requesting an extra $2.4B in funding to help regulate the space. Its Chair, Gary Gensler, voiced his testimony on March 29, 2023, budget hearing with the House Appropriations Committee, saying that his commission needs more money to keep up with the ongoing innovation.
In his words, Gary Gensler said:
“Rapid technological innovation in the financial markets has led to misconduct in emerging and new areas, not least in the crypto space. Addressing this requires new tools, expertise, and resources.”
He explained that the 2022 budget increase helped them bring staffing levels above what was recorded in 2016 for the first time. However, it is still not good enough, as the commission is finding it tough to match the growth rate of bad actors. He also revisited his previous comments calling crypto wild west once more.
SEC wants to become busier with the crypto space
The SEC has been busy in the past few months as it has been seen charging individuals and crypto organizations openly. It has charged Kraken, Justin Sun Linsay Lohan, Jake Paul, Beaxy crypto exchange, FTX, SBF, Terraform labs, Do Kwon, Gemini, Genesis, and others.
The commission also warned about charging Coinbase for offering some ‘questionable’ services in the U.S. without its approval. Now, its Chair has expressed interest in going further with its efforts by asking for more funding.
In the budget hearing, Gensler explained that they had received 35,000 separate tips and complaints in 2022. These tips helped them serve over 750 enforcement actions and orders for over $6.4B in penalties and disgorgements. He added that a third of these complaints were connected to the crypto space, which shows an increased need for regulation.
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