Gary Gensler, the controversial US Securities and Exchange Commission Chair, recently sounded the alarm on the uncharted territory of crypto markets.
In a bold move to rein in the untamed nature of these digital financial landscapes, Gensler addressed a panel of senators, imploring them to allocate an extra $109 million for his agency’s enforcement budget.
This request, if Congress approves, would elevate the SEC’s enforcement budget to an impressive $1.4 billion, signaling a relentless commitment to curbing potential abuses and safeguarding the public from the complexities of the crypto realm.
His call for increased funding is not a mere bureaucratic gesture but a plea for the necessary resources to bring order and clarity to an otherwise chaotic landscape.
Gensler Pushes For SEC Resources Amid Crypto Market Challenges
On July 19, before the Subcommittee on Financial Services and General Government US Senate Appropriations Committee, Gensler, in a speech, emphasized the critical role of the SEC in safeguarding consumers and highlighted the dynamic evolution of markets in recent years.
Gensler wasted no time highlighting the pressing concerns surrounding the crypto market, describing it as a “Wild West” characterized by rampant noncompliance and operating as a highly speculative asset class.
Bitcoin is back again in the $30K territory today. Chart: TradingView.com
Recognizing the need to adapt to the ever-changing landscape of technology and the presence of malicious actors, he urged the committee’s support in providing the necessary tools to address these emerging challenges effectively.
In pursuit of upholding market integrity and investor protection, Gensler made a compelling plea to ensure the SEC’s adequate resources. Acknowledging the growth and transformation of financial markets, he sought the committee’s backing to bolster the agency’s capacity to oversee the rapidly expanding crypto realm effectively.
Acknowledging Crypto-Related Complaint Surge
Gensler also pointed out that the Division of Enforcement has been inundated with a substantial volume of tips and complaints, a considerable portion related to the crypto market. To address this surge, a part of the budget will be allocated to strengthen the enforcement division.
Despite recently facing a setback in the Ripple vs. SEC lawsuit, the regulatory focus of the SEC remains firmly fixed on the crypto market. This strong stance has drawn criticism from some lawmakers, with Rep. Ritchie Torres expressing disapproval of the SEC’s handling of crypto regulation. Nonetheless, the SEC appears determined to continue its efforts to enforce rules and oversee the evolving landscape of cryptocurrencies.
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