During the U.S. Senate Committee on Appropriations, SEC Chairman Gary Gensler appealed for additional funding of tens of millions of dollars to bolster the agency’s multi-billion budget. Gensler emphasised the need for expansion to tackle the noncompliance in the crypto industry and protect investors from the risks associated with highly speculative assets.
Addressing lawmakers, Gensler stated that the crypto markets resemble the Wild West, with rampant noncompliance, risking the hard-earned assets of investors. He expressed his desire to be a stronger advocate for both investors and issuers with adequate funding to support their mission.
The SEC has been actively working to combat crypto-related crimes, and Gensler disclosed that they sought $72 million in extra funds to recruit numerous full-time staff members. A bipartisan bill, already approved by the committee, would allocate $2.364 billion for the SEC’s fiscal year 2024 budget. While this is sufficient to maintain the current staffing levels in light of inflation, Gensler urged the need for additional funding to expand the agency’s capabilities.
“Mr. Chairman, why did you and the SEC allow the FTX fraud to happen?”
👀 Watch Sen. @SenJohnKennedy grill @SECGov Chair @GaryGensler over the agency’s lack of oversight of @FTX_Official. pic.twitter.com/CQdk6qQQK3
— CoinDesk (@CoinDesk) July 19, 2023
Presently, the SEC employs 4,685 individuals, with approximately half dedicated to enforcement and examination tasks. The proposed funding would enable the addition of 170 new positions, as well as secure full-year funding for the staff hired in 2023, potentially raising the total full-time equivalent employees at the SEC to 5,139.
During the hearing, lawmakers displayed diverse perspectives on crypto and the SEC’s regulatory approach. Senator John Kennedy questioned the SEC’s actions in addressing alleged fraud at FTX, while Senator Richard Durbin expressed concerns about crypto in general and the SEC’s ability to oversee the industry adequately. On the other hand, Senator Bill Hagerty delved into specific metrics, illustrating worries that the SEC’s unclear rules and “regulation by enforcement” were driving businesses and innovations abroad.
