SEC Chair Gary Gensler Urges Congress to Allocate $109 Million for Crypto Market Enforcement
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The US SEC’s controversial Chair, Gary Gensler, recently addressed a panel of senators, asking them to add even more money to the regulator’s enforcement budget. According to Gensler, it is necessary to do so in order to rein in the untamed nature of the digital financial landscape.
BREAKING: GARY GENSLER WANTS MORE FUNDING FOR THE SEC TO PROTECT INVESTORS FROM CRYPTO AND OTHER EMERGING TECHNOLOGIES
— DEGEN NEWS 🗞️ (@DegenerateNews) July 19, 2023
Gensler called the crypto markets an uncharted territory, comparing it to the “Wild West” and stating that the SEC requires another $109 million allocated to his agency. If Congress approves the request, that would bring the SEC’s enforcement budget to $1.4 billion.
Gensler asks for another $109m for the SEC budget
The regulator’s Chair presented the high cost as a signal of the SEC’s relentless commitment to curbing potential abuses and safeguarding the public from the crypto world. Further insisting on the crypto industry being a disorderly and chaotic landscape, he argued that the call for funding is more than just a bureaucratic gesture, claiming that it’s a plea for necessary resources.
Gensler held his speech yesterday, July 19th, before the Subcommittee on Financial Services and General Government US Senate Appropriations Committee. He emphasized the critical role of the SEC in keeping consumers safe. He also pointed out the dynamic evolution of the markets over the last few years, stressing its rapid growth.
He said that cryptocurrencies operate as a highly speculative asset class and that there is rampant noncompliance in the industry, to the point where this is one of its major characteristics.
Now, Gensler claims that the SEC recognizes the need to adapt to the ever-changing landscape and technology in the industry, which is accompanied by the constant presence of malicious actors.
But, to do that, the regulator requires more funding in order to use the proper tools and address emerging issues.
While the SEC has claimed that the crypto industry doesn’t require regulations as it can simply be regulated in accordance with security regulations, he at least acknowledged the growth and transformation of financial markets. With that said, he seeks the committee’s backing that would bolster the agency’s capacity to monitor the crypto industry’s growth.
The SEC needs the money to address crypto-related complaints
One more thing worth noting is that Gensler pointed out that the Division of Enforcement was inundated with a significant amount of tips and complaints. According to him, a strong portion of them was tied to the crypto market. A part of the budget he requested would be used for addressing this surge in complaints.
Recently, the SEC suffered a setback as the regulator’s lawsuit against Ripple ended partially in favor of the company. While the crypto company won only a partial victory, the federal judge said that XRP is not a security, contrary to the SEC’s claims.
Despite this setback, the SEC is keeping its eye on the crypto market, even though its strong stance has drawn a lot of criticism from certain lawmakers, some of which even requested an investigation of the regulator and its moves against the crypto industry. For now, Gensler and the SEC do not appear to plan to change their behavior toward the crypto industry, and the loss of the Ripple case does not seem to have caused the regulator to rethink its stance.
