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The Chairperson of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, is demanding more funds to support his regulatory crusade against cryptocurrencies.
Gensler Wants More Money
On a March 29 testimony to the House Financial Services Subcommittee for SEC’s fiscal year 2024, chief Gary Gensler demanded more financial support to keep up with the technological advances of the crypto sector. He has demanded that the regulatory body needs a higher functioning budget to crack down effectively on bad actors in the country. He 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.”
The budget amount of $2.4 billion was first proposed by President Joe Biden for the fiscal year 2024.
Agency Spread Thin, Needs Funds: Gensler
Gensler claimed that the SEC funds are already spread thin, and the agency requires funding in the amount of $2.4 billion to manage the increasing complexity in the capital markets as introduced by crypto companies. Giving an account of the agency’s functioning, Gensler reported that the Division of Enforcement and Examinations, which consists of a major chunk of the agency’s staff, had received over 35,000 separate tips, complaints, and referrals from whistleblowers in the crypto industry. On top of that, he reported that the Enforcement Division cracked the whip on 750 different cases last year by enforcing actions that brought in $6.4 billion in penalties and fines. Of these 750, thirty actions were related to the crypto industry and brought in $242 million of penalties, indicating a 36% increase over the 22 actions in 2021.
SEC’s Crypto Crusade
However, his statements at the hearing indicate that, as always, Gensler has approached the fund's appeal by lashing out at the crypto industry and portraying his own agency as the lone “cop on the beat” working against the big bad. His statements indicate that it is an unruly space full of bad actors whose sole aim is to trick funds out of the pockets of honest American citizens.
At the budget hearing, Gensler said,
“Further, we’ve seen the Wild West of the crypto markets, rife with noncompliance, where investors have put hard-earned assets at risk in a highly speculative asset class.”
The SEC has been accused of being extra-judicial when it comes to cryptocurrency. The regulatory body is quite insistent on getting cryptocurrencies declared as securities so that they fall under the SEC’s purview. The agency’s severe action against certain crypto companies without any congressional oversight has drawn the interest of the U.S. House Financial Services Committee, which has recently summoned Gensler to a subcommittee hearing in April.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.