• 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 claimed that the SEC funds are already spread thin and require a budget in the amount of $2.4 billion to manage the increasing complexity in the capital markets as introduced by crypto companies.
• The SEC has been accused of being extra-judicial when it comes to cryptocurrency by lashing out at the crypto industry and portraying their own agency as the lone “cop on the beat”.
Gary Gensler Demands More Funds
The Chairperson of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, is demanding more funds to support his regulatory crusade against cryptocurrencies. 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 technological advances of the crypto sector with a proposed budget amount of $2.4 billion which was first proposed by President Joe Biden for fiscal year 2024.
SEC’s Funds Are Already Spread Thin
Gensler claimed that SEC funds are already spread thin, and they require funding in amount of $2.4 billion to manage increasing complexity in capital markets as introduced by crypto companies. He reported that Division Enforcement and Examinations, which consists major chunk of agency’s staff had received 35,000 separate tips complaints and referrals from whistleblowers in crypto industry last year alone. Furthermore he also reported that Enforcement Division cracked whip on 750 different cases last year by enforcing actions bringing about $6.4 billion in penalties and fines where thirty actions were related to cryptocurrency bringing about $242 million worth of penalty indicating 36% increase over 22 actions in 2021 itself.
Gary Gensler Lashes Out At Crypto Industry
Giving an account of functioning at hearing , Gary Gensler portrayed his own agency as lone “cop on beat” working against big bad while lashing out at crypto industry claiming unruly space full bad actors whose sole aim is tricking funds out pockets honest American citizens “We have seen Wild West crypto markets rife noncompliance where investors have put hard earned assets risk highly speculative asset class” said chairperson during budget hearing . His statements indicate that it is an unruly space full bad actors whose sole aim is tricking funds out pockets honest American citizens .
Accusation Of Extra-Judicial Behavior By The SEC
The SEC has been accused being extra judicial when it comes cryptocurrency with its regulators insisting getting cryptocurrencies declared securities so they can be regulated under federal law however again this decision has been met with disapproval from many quarters who argue this will only complicate matters further rather than simplifying them .
In conclusion , SEC’s Chief Officer Gary Gensler has requested for additional funding from U.S government citing increasing complexity caused due rising technology advancements particularly within cryptocurrency space so that it can effectively crackdown any malicious activity within same .