• U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler has requested additional funds to help carry out regulatory action against cryptocurrencies.
• He stated that the SEC requires a higher budget of $2.4 billion to effectively combat bad actors in the crypto space due to its rapid technological developments.
• The Division of Enforcement and Examinations received over 35,000 separate tips, complaints, and referrals from whistleblowers regarding cryptocurrency-related misconduct, with 750 enforcement actions bringing in $6.4 billion in penalties last year alone.
Chair of SEC 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 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 and proposed a budget amount of $2.4 billion which was first proposed by President Joe Biden for the fiscal year 2024.
Agency Spread Thin Needs Funds
Gensler claimed that the SEC funds are already spread thin, and agency requires funding in the amount of $2.4 billion to manage complexity introduced by crypto companies in capital markets. Moreover, he reported that Division of Enforcement and Examinations had received over 35,000 separate tips, complaints, and referrals from whistleblowers in crypto industry while they cracked whip on 750 different cases last year by enforcing actions that brought in $6.4 billion in penalties and fines . Out these 750 cases 30 were related to the crypto industry that brought around $242 million worth penalties indicating 36% increase from 22 actions taken last year 2021 .
SEC’s Crypto Crusade
Gensler has approached fund’s appeal by lashing out at crypto industry portraying his own agency as lone ‚cop on beat‘ working against big bad actors whose sole aim is tricking funds out of pockets of honest American citizens . At budget hearing he said “Further we’ve seen Wild West of Crypto markets rife with non-compliance where investors have put hard-earned assets at risk in highly speculative asset class” . According to some critics SEC has been extra judicial when it comes cryptocurrency as they are quite insistent on getting cryptocurrencies declared securities even though there is no legal basis or mandate given to them regarding this matter
Conclusion
In conclusion ,Gary Gensler believes that new tools , expertise , resources & higher functioning budget are needed as rapid technological innovation has paved way for misconducts & new areas such as cryptospace & asked for an increased budget size which is currently 2 . 4 billion dollars proposed by President Joe Biden for fiscal year 2024
Takeaway
To summarize , The U . S Securities & Exchange commission chair Gary Genser has asked for increased funding so their agency can tackle issues related cryptocurrency market & protect investors from any kind exploitation or fraud activities taking place within it