U.S. Securities And Exchange Commission (SEC) Chairman Gary Gensler told a congressional hearing that the securities regulator requires “new tools, expertise, and resources” To regulate the crypto industry. “We’ve seen the Wild West of the crypto markets, with a lack of compliance, where investors have put their hard-earned funds at risk in a highly speculative asset class,” He emphasized.
SEC Chair Gary Gensler On Budget Request And Crypto Regulation
The chairman of the U.S. Securities And Exchange Commission (SEC), Gary Gensler, appeared before the House Appropriations Subcommittee On Financial Service And General Government Wednesday to speak about his agency’s Fiscal Year (FY 2024) Budget request.
“I am pleased to support the President’s FY 2024 request of $2.436 billion for the SEC, to put us on a better track for the future,” Gensler began. “The FY 2024 request seeks funding for an additional 170 positions, as well as full-year funding for those staff hired in FY 2023.”
The SEC chief addressed the subcommittee on the subject of crypto asset regulation: “We’ve witnessed the Wild West of the crypto markets, with a lack of compliance, where investors have put their hard-earned funds at risk in a highly speculative asset class.” He noted:
The financial markets have seen rapid technological innovation that has resulted in misconduct in new and emerging areas, including the crypto space. Addressing this requires new tools, expertise, as well as resources.
The SEC chairman added that the additional staff will provide the SEC’s Enforcement Division “with greater ability to address these challenges, investigate misconduct on a larger scale, and expedite the resolution of enforcement investigations.”
Gensler also mentioned that the Securities Watchdog received more than 35,000 tips, complaints and referrals from whistleblowers during FY 2022. Despite having limited resources, the agency’s Enforcement Division In FY 2022 there were more than 750 enforcement action, representing a 9 percent increase on the previous year. “Our actions resulted in orders for $6.4 billion in penalties and disgorgement,” The chairman of the SEC declared.
The SEC is becoming increasingly active in the crypto space. This week the regulator sent a “Wells notice” to Coinbase concerning the crypto exchange’s potential violations of securities law. The Regulator also charged Tron Founder Justin Sun for market manipulation and the offering of unregistered securities. In addition, the SEC has taken action against crypto-exchanges Kraken and Stablecoin BUSD issuer Paxos. Meanwhile, Gensler has maintained that all crypto tokens, other than bitcoin, are securities.
What do you think of the SEC chairman saying that the securities regulator requires “new tools, expertise, and resources” To oversee the crypto industry? Let us know your thoughts in the comments below.
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