Gary Gensler is the chairman of the United States Securities and Exchange Commission, the stock market policeman. He supported President Joe Biden’s decision to request $2.4 billion in funding. The SEC is supposed to use it to crack down on “misconduct” in the cryptocurrency industry.
What will the 2.4 billion requested by the boss of the SEC be used for?
Gensler made his request to the House Appropriations Committee, the US government’s spending regulator. In his testimonyhe justifies this request for additional funds by stating:
“Rapid technological innovation in financial markets has led to missteps in emerging and new areas, especially in the crypto space. Addressing this requires new tools, expertise and resources.”
In other words, the additional funding would allow the SEC to hire 170 additional employees. These would be for the enforcement and review divisions. As still reminded CoinTelegraphthe SEC had already requested a budget increase for the same reason. It had then increased its workforce. But that doesn’t seem like enough since Gensler says, “As a cop on the beat, we have to be able to respond to the bad actors match. Thus, it makes sense that the SEC would grow alongside the expansion and increased complexity of capital markets. »
A justified request?
Several complaints are emerging from the crypto industry regarding the aggressive behavior of the SEC. But the regulator proudly displays its statistics. Gensler reports that in 2022, the SEC received more than 35,000 complaints and whistleblowers. In addition, the Law Enforcement Division filed over 750 enforcement actions last year. In total, orders for $6.4 billion in penalties and restitutions have been registered. Gensler is determined to be done with cryptocurrencies. While some observers are calling for more regulation, he claims the country doesn’t need it.
In the absence of regulation, the SEC seems to have a free hand to act on the crypto industry. She has even sometimes intervened on subjects that go beyond her competence.. What abuses can we expect from this regulatory authority if more means are granted to it?
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