Gary Gensler, chairman of the United States Securities and Exchange Commission, states that the regulator is understaffed and requires additional financing to keep up with “increased complexity in the capital markets.”
The continuing need to clamp down on “misconduct” in the crypto industry has prompted United States Securities and Exchange Commission Chair Gary Gensler to endorse U.S. President Joe Biden’s proposal to designate a record $2.4 billion in financing for the regulator.
Gensler stated in prepared testimony for the March 29 budget hearing with the House Appropriations Committee that the additional funding was necessary to maintain the rate of innovation, and he added:
“Misconduct in new and developing sections of the financial markets, including the crypto realm, has resulted from the rapid technical progress in this sector. This issue necessitates novel tools, knowledge, and resources.”
Gensler estimates that 170 new employees could be hired by the SEC with the new funds, with the majority serving in compliance and investigation.
The SEC chairman stated that the previous year’s budget increase allowed the agency to surpass 2016’s personnel levels for the first time, but the regulatory agency still needed more staff.
“As patrol officers, we must be able to compete with criminals. Therefore, it makes sense for the SEC to develop as the capital markets expand and become more complex.
Gensler once again referred to cryptocurrency as the wild west, claiming that the nascent industry is “rife with noncompliance” and that cryptocurrency investors are placing their “hard-earned assets at risk in a highly speculative asset class.”
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