- The SEC Chair, Gary Gensler, supports Biden’s request for $2.4B
- The fund will be deployed to strengthen the enforcement division
- The SEC has increased its regulatory effort due to increased crimes in crypto
The US Securities and Exchange Commission (SEC) continues to increase its tempo in regulating the crypto industry. The regulatory body is seeking financial support to regulate and curb the excesses of industry players. Through his chair, Gary Gensler, the SEC has been vocal about funding policies, regulations and mechanisms that will reduce scams and corrupt practices in the crypto industry— to the barest minimum. One such move is his support for Joe Biden’s request to allocate $2.4 billion in funding to fight crypto corruption.
Gensler Solicits Funds To Fight Crypto Corruption
Gary Gensler, the Chair of the United States Securities and Exchange Commission (SEC) has been vocal about the allocation of huge funds to regulators. He opines that they will deploy the funds in the fight against crypto corruption and other related illegal activities. He showed his support for Joe Biden— America President’s plan to allocate $2.4 billion in funding for regulators.
While appearing before the House Committee on Appropriations, the SEC’s chair said they need the additional funding. He reiterated that the $2.4 billion funding would allow the SEC to hire about 170 staff. These staff will work within the examination and enforcement division of the crypto regulatory body.
You would recall that in May 2022, when Gary Gensler appeared before the House, he maintained that the request for more funds was to grow its enforcement arm by 50 people. Barely a year after, the SEC is seeking the fund to increase its staff by about 170 people.
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Furthermore, he added that the record fund of $2.4 billion would strengthen SEC’s litigation, bolster crypto assets capabilities, and empower its cyber unit. The fund will also be used to acquire new tools and expertise to improve enforcement.
SEC Increase Efforts To Regulate Crypto
In recent times, the Security and Exchange Commission (SEC), has increased its regulatory function and oversight in the digital assets ecosystem. This became necessary due to the increase in crypto-related scams and malpractices by industry players.
According to Gary Gensler, the Security and Exchange Commission received over 35,000 tips and complaints from whistleblowers in 2022. With increased effort, they exerted over 750 enforcements with about $6.4 billion in penalties and disgorgement.
Similarly, SEC’s sanctions and penalties increased by 36% between 2021 and 2022. It is therefore expedient to increase the enforcement framework to meet the increasing crime rates in the industry— in 2023. It is on this premise that in less than four months into 2023, the SEC has sanctioned several crypto firms such as Paxos, Kraken, Coinbase, Genesis, Gemini, and a host of others.
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Therefore, industry players are optimistic that the increased funding will enable the regulatory body to strengthen its personnel, acquire more tools, and engage in robust tracking cum rigid enforcement. Conclusively, SEC will help reduce the surging crimes and illegal trading activities that have characterized the cryptocurrency ecosystem.
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