Gary Gensler discussed the utilization of the $2.4 billion budget granted to the SEC in a speech before a House Committee. The SEC chair emphasized the need for more resources to handle new challenges.
United States Securities and Exchange Commission (SEC) Chair Gary Gensler talked to lawmakers about the recently granted funds in dealing with the crypto market. Gensler spoke before the Subcommittee on Financial Services and General Government U.S. Senate Appropriations Committee on July 19.
Gary Gensler on $2.4B Budget Approval
Gensler begins his speech by talking about the important role that the SEC has in protecting consumers and that there has been growth and change in markets over the past decade.
He quickly dives into the implications of the crypto market, which in his words, has been a Wild West, “rife with noncompliance,” and is a highly speculative asset class.
As such, Gensler deems it necessary to adapt to the changing nature of technology and bad actors, and he seeks to be granted the tools to tackle new developments. He requested the committee’s support to ensure that the SEC is “adequately resourced.”
The SEC has been in the news due to the lawsuit with Ripple. Unfortunately, the agency faced a defeat in this legal battle. Check out our guide on the lawsuit to learn more: Everything You Need To Know About Ripple vs SEC
The Committee approved the $2.4 billion budget last week, which would bring the SEC to the same staffing level as seven years ago. Consequently, Gensler said,
“I am pleased to support the President’s FY 2024 request of $2.436 billion for SEC operations, to put us on a better track for the future. The bulk of the increase would be to support currently authorized staffing levels given inflation… I’m discussing the full request, I want to thank this Committee for its bipartisan approval last week on the bill that would fund the SEC at $2.364 billion, which would allow the SEC to continue operating at its current level.”
Evolving Technology a Challenge for the SEC
Gensler only briefly dives into cryptocurrencies in his speech, but he does note that its Division of Enforcement has been facing a large number of tips and complaints. Some of the funds of the budget will go towards bolstering the division. Crypto-related complaints will have been a sizable portion of those complaints.
The SEC Chair said that enforcement with respect “to misconduct in emerging and new areas, not least in the crypto space” would require new tools, expertise, and resources. The new staff members would help the SEC meet these challenges.
Fresh off what was a loss in the Ripple vs. SEC lawsuit, the SEC is still turning its attention to enforcing regulation for the crypto market. This has led to some pushback from lawmakers, with Rep. Ritchie Torres criticizing the SEC for its handling of crypto regulation.
Meanwhile, the SEC has been working on reviewing BlackRock’s Bitcoin ETF application. The SEC has long worried about market manipulation and investor protection with regard to crypto, but BlackRock is the world’s largest asset manager and as such, could make inroads.
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