Cryptocurrency NewsSEC Seeks $158 Million Boost for Crypto Oversight Amid Market Challenges

SEC Seeks $158 Million Boost for Crypto Oversight Amid Market Challenges

In March 2024, the U.S. Securities and Exchange Commission (SEC) requested Congress for an additional allocation of $158 million in federal funds. This request, detailed in the Congressional Budget Justification, aims to address a range of challenges, including the regulation of the cryptocurrency markets. A portion of these funds is earmarked for hiring new staff and supporting legal battles the SEC is currently engaged in.

SEC Chairman Gary Gensler has famously described the cryptocurrency sector as the “wild west,” highlighting the dramatic shift in how investors communicate, from Reddit forums to endorsements by celebrities. He noted, “We’re witnessing the untamed frontiers of the crypto markets, teeming with noncompliance, where investors gamble their hard-earned money on a highly speculative asset class.”

For 2024, the SEC’s budget stands at $2.4 billion, with an increase to $2.5 billion requested for 2025. Gensler argues that these financial enhancements are critical in bolstering the SEC’s capacity to combat offenses in an evolving investment landscape. He likens the SEC’s role to that of a vigilant law enforcer, prepared to confront any challenge.

Additionally, the agency is set to grow its team to 5,473 members this year, with plans to add 23 new positions within its examination department. This expansion is aimed at enhancing the SEC’s oversight of emerging risks tied to cryptocurrency assets and innovative financial technologies.

Throughout his leadership, Gensler has underscored the importance of cryptocurrency regulation, spotlighting the illicit use of digital currencies. He has also voiced concerns over the inherent volatility of cryptocurrencies and the potential risks they pose to investors.

Last month, Gensler highlighted Bitcoin’s predominant role in the ransomware economy, despite the SEC’s approval of 11 spot Bitcoin Exchange-Traded Funds (ETFs). His stance on Bitcoin remains cautious, reflecting ongoing concerns about its impact on the financial landscape.

source

Join us

13,690FansLike
1,625FollowersFollow
5,652FollowersFollow
2,178FollowersFollow
- Advertisement -