Author: Rahul Nambiampurath Source: beincrypto Source: LianGuai, Shano Baba
SEC Chairman Gary Gensler has discussed using a budget of $2.4 billion to address misconduct in the cryptocurrency market.
These funds will help the SEC deal with the increasing number of complaints related to cryptocurrencies and strengthen the enforcement division.
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Despite criticism, the SEC will continue to focus on enforcing cryptocurrency regulations and is reviewing BlackRock’s Bitcoin ETF application.
SEC Chairman Gary Gensler spoke at the Senate Appropriations Committee’s Financial Services and General Government Subcommittee about the utilization of a $2.4 billion budget granted to the SEC. Gensler emphasized the need for more resources to tackle new challenges, particularly those related to the cryptocurrency market. He explained to legislators how the SEC would utilize these funds to strengthen regulation and address various issues facing the cryptocurrency market.
Gary Gensler discusses the approval of a $2.4 billion budget
In his speech, Gary Gensler first discussed the SEC’s important role in protecting consumers and highlighted the growth and changes that have occurred in the market over the past decade. He delved into the impact of the cryptocurrency market, describing it as a “wilderness” full of non-compliance and a highly speculative asset class.
Therefore, Gensler believed it was necessary to adapt to the changing nature of technology and bad actors, and he sought tools to address new developments. He requested the committee’s support to ensure that the SEC “receives adequate resource support.”
Unfortunately, the U.S. Securities and Exchange Commission (SEC) has frequently made headlines due to its lawsuit with Ripple. Unfortunately, the agency has faced setbacks in this legal battle.
Last week, the committee approved a budget of $2.4 billion, which will restore the SEC’s staffing levels to those of seven years ago. Therefore, Gensler stated:
“I am pleased to support the SEC’s operational budget of $2.436 billion requested for the President’s fiscal year 2024, paving the way for a better future. I want to thank this committee for approving the budget of $2.364 billion last week in a bipartisan manner, which will enable the SEC to continue operating at its current level.”
Evolving technologies pose challenges to the SEC
In his speech, Gensler briefly mentioned cryptocurrencies but pointed out that his enforcement division has been dealing with a significant number of reports and complaints. Part of the budget will be used to enhance the division’s capabilities. Complaints related to cryptocurrencies will make up a considerable portion of these. He stated that for emerging areas and misconduct in new areas, especially in the cryptocurrency field, enforcement work requires new tools, expertise, and resources. The new employees will help the SEC address these challenges.
After suffering a setback in the lawsuit between Ripple and the SEC, the SEC is still focusing on regulatory enforcement in the cryptocurrency market. This has sparked opposition from some legislators, with Congressman Ritchie Torres criticizing the SEC’s approach to cryptocurrency regulation.
Meanwhile, the SEC has been reviewing BlackRock’s application for a Bitcoin ETF. The SEC has long been concerned about market manipulation and investor protection issues in the cryptocurrency market, but as the world’s largest asset management company, BlackRock may make some progress.