SEC $109 million in additional funding is required to increase enforcement capacity in the digital asset market. This was stated at the hearings in Congress by the head of the department, Gary Gensler.
According to the official, the cryptocurrency industry is “rife with examples of non-compliance.”
“We saw the Wild West […]where investors put their hard-earned funds at risk in a highly speculative asset class,” Gensler emphasized.
The head of the SEC explained that the additional resources would strengthen the Commission’s role as “protector of the public interest – both investors and issuers.”
“Eradicating fraud, manipulation and abuse reduces risks in the system”, — he added.
The Chairman of the Commission proposed to increase the agency’s resources by $72 million. This amount is necessary to attract an additional 170 specialists to the staff.
The agency currently employs 4,685 people. Approximately half of them are occupied with issues of law enforcement and expertise.
In the last fiscal year, the SEC initiated 750 enforcement actions (+9% YoY). As a result, the Commission collected $6.4 billion in fines.
“Rapid technological innovation has led to misconduct in emerging and new areas. Not least in the crypto space. Solving this problem requires new tools, experience and resources,” Gensler explained.
The official has requested an additional $393 million to boost technology capabilities in cybersecurity and data analytics.
In total, Gensler proposed to increase the agency’s budget by $454 million, from $4.7 billion to $5.1 billion.
According to CoinDesk, lawmakers’ questions to Gensler showed differences in attitudes towards cryptocurrencies and the SEC’s approach to its regulation.
Thus, Senator John Kennedy became interested in the reasons for the Commission’s inaction regarding the alleged fraud by the FTX management.
In response, Gensler noted that the platform’s headquarters were based abroad, and the enforcement process itself takes time.
Senator Richard Durbin asked the head of the SEC about the adequacy of the regulator’s funds to control the industry.
Their colleague J. Bill Hagerty expressed concern about the loss of innovative potential and the departure of business abroad because of the agency’s line.
Recall that in July 2023, Democratic Congressman Richie Torres demanded an investigation into the Commission due to the approach to crypto regulation.
Earlier, lawmakers introduced a bill to fire Gensler and restructure the SEC due to “continued abuse” of the head of department.
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