SEC Chair Gary Gensler has made a budget appeal, seeking increased financial support.
Gensler refers to the crypto market as the “Wild West” and claims that fraud and scams plague it.
The proposed budget of $72M intends to strengthen the SEC’s workforce.
In a significant address to the US Senate Appropriations Committee, SEC Chair Gary Gensler passionately emphasized the urgent need for increased financial support to regulate the cryptocurrency industry, which he referred to as the “Wild West.” The Chairman stressed the importance of protecting investors from potential risks arising due to non-compliance within the industry.
Gary Gensler’s call to arms comes with a specific funding requirement of an additional $72 million. The proposed budget increase aims to facilitate the recruitment of approximately 170 new full-time employees, bolstering the SEC’s workforce. Further, as of 2023, the SEC team consisted of 4,685 members, with nearly half dedicated to monitoring and review engagements. With the proposed financial injection, the total number of employees could rise to around 5,139.
SEC Chairman’s Strategic Move
The SEC Chairman’s belief prompts his request as he thinks that the bipartisan bill recently approved, which allocated $2.4 billion to the SEC for 2024, would primarily cover inflation-adjusted expenses for the existing staff, falling short of the necessary reinforcements.
SEC Chair Gary Gensler’s statement (Source: US Senate)
The urgency of Gensler’s plea for additional resources is underscored by the recent ruling in the SEC v Ripple lawsuit. Wherein a federal judge declared that XRP, a prominent cryptocurrency, was not a security. While the SEC chair assured that the commission would be assessing the case, his testimony before the committee hinted that his stance on regulation by enforcement may remain unchanged.
However, investors and industry stakeholders eagerly await the outcome of Chairman Gensler’s appeal to the Senate Appropriations Committee, as it could significantly impact the regulatory landscape surrounding cryptocurrencies and the protection of investors in the fast-evolving digital asset space.