In March 2024, the U.S. SEC asked Congress to appropriate an additional $158 million in federal funds.
According to Congressional Budget Justification, the funds will solve several issues, including cryptocurrency market regulation. The regulator plans to use part of the funds to find new employees and help fund lawsuits the agency faces.
SEC Chairman Gary Gensler called the crypto industry the “wild west.”
“There has been a dynamic change in communications to and among investors, from Reddit forums to celebrity influencers. Further, we’ve seen the Wild West of the crypto markets, rife with noncompliance, where investors have put hard-earned assets at risk in a highly speculative asset class.”
Gary Gensler, SEC Chairman
The SEC‘s total budget for 2024 is $2.4 billion. For its further activities in 2025, the regulator requested $2.5 billion. According to Gensler, these changes have significantly increased the likelihood of committing offenses. The chairman compared the SEC to a police officer who must be able to stand up to an opponent.
The agency plans also to expand its workforce to 5,473 employees this year. The regulator’s examination department intends to create an additional 23 positions to strengthen its ability to manage critical risks associated with crypto assets and new financial technologies.
Over his tenure as SEC Chairman, Gensler has emphasized the need to regulate cryptocurrencies, focusing on illegal activities with cryptocurrencies. In addition, he pointed out the volatility of this asset class and the danger it poses to investors.
Gensler complained last month that Bitcoin (BTC) has the largest share of the ransomware market. Despite the agency approving 11 spot Bitcoin ETFs, Gensler continues to hold a negative attitude towards BTC.
