SEC Chair Seeks $2.4 Billion To Pursue Cryptocurrency Misconduct
Gary Gensler, the US Securities and Exchange Commission Chair, has stated that the regulator requires additional financing to cope with the growing complexity of the capital markets. He mentioned that the agency is currently overburdened.
Gensler agreed with president Joe Biden’s proposal to appropriate $2.4 billion to fund the regulator. He emphasized the need for continued action against unethical practices in the crypto sector.
During the recent budget hearing, Gensler presented his prepared testimony, stating that the extra funding was necessary to maintain the momentum of innovation. The hearing had occurred in the presence of the House Appropriations Committee.
He added that the swift advancements in technology in financial markets have resulted in dishonest practices in emerging and novel fields, including blockchain and cryptocurrency. Gensler stressed the need for new tools, proficiency, and resources to tackle these issues.
Improving Overall Efficiency
He said the increased funding would enable the Securities and Exchange Commission to recruit 170 new personnel, primarily for its examination and enforcement departments. The SEC Chair further said the budget increment from the previous year enabled them to exceed their staffing levels from 2016. However, the regulator still needs more resources.
He emphasized the need for the regulator to keep up with the growth and intricacy of the financial markets to combat malicious practices. Gensler reiterated his earlier remarks and likened the cryptocurrency industry to the untamed west, citing rampant non-adherence to regulations.
He also expressed concerns about investors jeopardizing their valuable assets by investing in the highly speculative digital asset markets. Gensler mentioned that the regulatory authority received over 35,000 tips, referrals, and complaints from informants and other sources last year.
This assistance helped the enforcement agency to initiate over 750 enforcement measures that culminated in $6.4 billion in disgorgement and penalties. The financial watchdog also took 30 actions against the cryptocurrency sector, resulting in $242 million in monetary fines. This marks a 36% rise from 22 actions the commission took regarding the crypto space in 2021.
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