SEC Chair Gary Gensler has requested for a significant increase in the agency’s budget, justifying his stance with concerns over non-compliant behavior in the complex crypto markets.
In an effort to grapple with the new frontier cryptocurrency markets, U.S. Securities and Exchange Commission (SEC) Chairm Gary Gensler has called for a budgetary increase for the agency. He cited the need for enhanced vigilance against potential non-compliance in this emerging sector in a speech on July 19:
The SEC cannot continue to regulate by enforcement. The lawsuits filed against digital asset firms are not protecting the public and are stifling innovation and growth.
My letter to SEC Chair Gensler ⬇️ pic.twitter.com/RjoBNs5YQs
— Rep. Dusty Johnson (@RepDustyJohnson) July 19, 2023
The representatives argue in favor of a statutory framework, a system that mandates regulatory compliance from the outset, thereby providing consumer protection before potential harm is inflicted. They conveyed this perspective to Gensler in a July 19 letter, proposing a pre-emptive strategy rather than the current reactionary enforcement actions.
As the SEC faces the challenge of effectively choosing what is a security and looking for a good enough spot Bitcoin ETF to approve, the SEC views it as a way to protect investors from bad actors before they begin, as:
“Such growth and rapid change also mean more possibility for wrongdoing. As the cop on the beat, we must be able to meet the match of bad actors. Thus, it makes sense for the SEC to grow along with the expansion and increased complexity in the capital markets.”