SEC, crypto regulator: A budget-hungry iron fist

An alert has been issued by the Securities and Exchange Commission (SEC), headed by Gary Gensler. Facing the increasing challenges of the cryptocurrency and securities market, Gensler’s team is calling for significant financial and human reinforcements. The request is clear: more resources are needed to better regulate. This approach is part of a stated desire to strengthen surveillance and prevent financial misconduct.

The SEC in Search of Funding to Monitor Cryptos

In a forceful speech, Gary Gensler, the marshal of the United States Securities and Exchange Commission (SEC), called for financial assistance. ” Rapid technological innovation in financial markets has led to misconduct in emerging and new fields, particularly in the crypto space. To address this, we need new tools, expertise, and resources ,” he stated last March, requesting the hiring of 170 new employees to bolster his team. This expansion cannot happen without an adequate budget, which is why Gensler is proposing an increase in the SEC’s budget to $2.43 billion.

#SEC requests $158M extra funding to tackle crypto risks in 2025. 💵 Chair Gensler emphasizes the need for robust oversight during rapid market changes. Funds to expand workforce, focus on Division of Examinations for better crypto regulation.👇 https://t.co/4yvT1pIO1u

— CCN (@CCNDotComNews) March 19, 2024

The United States Securities and Exchange Commission (SEC) has submitted its budget request for 2025, aimed in part to support its efforts to regulate the cryptocurrency sector. “We’ve seen the Wild West of the crypto markets, a breeding ground for irregularity. As watchdogs, we must be able to meet the expectations of nefarious actors ,” emphasized Gary Gensler, chairman of the SEC.

The request, detailed in the Congressional Budget Justification (CBJ) for the fiscal year 2025, also includes the agency’s Annual Performance Plan (APP) for fiscal year 2025 and the Annual Performance Report (APR) for 2023.

” I am pleased to present our budget request for fiscal year 2025, totaling $2.594 billion, supporting 5,621 positions and 5,073 full-time equivalents. With deficit-neutral funding, any amount allocated to the agency will be offset by transaction fees ,” Gensler wrote in the report summary.

Fraud Tracking and Risk Management

The SEC’s Division of Examinations (EXAMS) is looking to add 23 new positions for 2025, thus enhancing its capacity to manage critical risks that are constantly evolving, especially those related to cybersecurity and emerging technologies like crypto-assets, reports Bitcoin.com.

Furthermore, the SEC’s Office of Investor Education and Advocacy (OIEA) has requested an additional position for fiscal year 2025. ” This position will primarily focus on addressing inquiries and complaints related to fraud involving cryptographic asset securities ,” the body specified.

Crypto Industry: Order at Any Cost

Gary Gensler shared in the report his view of the crypto world:

” We have witnessed the Wild West of the crypto markets, riddled with non-compliances, where investors have put their savings at stake in a highly speculative asset class “.

” As a force of order, we must live up to the expectations of malicious actors. It is therefore critical for the SEC to keep pace with the expansion and growing complexity of financial markets ,” Gensler emphasized.

It’s worth noting that last year, the SEC targeted several crypto exchanges like Binance, Coinbase, Kraken, and others.