SEC Chair Gary Gensler testified before the Subcommittee on Financial Services and General Government about the SEC’s FY 2024 budget request. This is the first public comment from Gensler in an official capacity since the most recent enforcement actions against cryptocurrency exchanges. Tensions remain over how the SEC has conducted its regulatory guidance over the past few years. Gensler emphasized the importance of the SEC in protecting investors and issuers, and highlighted the rapid growth and change in the markets, including the Wild West of the crypto markets.
Fast facts
- The SEC received over 35,000 tips, complaints, and referrals related to crypto in FY 2022.
- The Division of Enforcement brought over 750 enforcement actions in FY 2022, resulting in $6.4 billion in penalties and disgorgement.
- The Division of Examinations conducted over 3,000 examinations in FY 2022, including in the crypto space, and requested additional funding to address risks in the crypto markets.
- The Division of Corporation Finance oversees the disclosures of public companies and requested additional funding to serve investors as markets grow and evolve.
- The Division of Trading and Markets oversees more than 3,500 broker-dealers and is responding to an increasing number of public inquiries, including related to crypto.
Gensler requested $2.436 billion for the SEC, which is deficit-neutral and offset by transaction fees. He emphasized that the SEC needs to grow along with the expansion and increased complexity in the capital markets, and that the FY 2024 budget request would give the agency resources to better protect the American public. As the crypto market continues to evolve, it is likely that the SEC will play an increasingly important role in regulating this asset class.
Gensler is scheduled to testify in front of the House Financial Services Committee on April 18, according to HFSC chairman Patrick McHenry (Republican), in the first oversight hearing with the SEC. McHenry signaled that the committee will be asking about SEC approach to rule-making and digital assets.
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- Source: https://forkast.news/headlines/sec-chair-urges-more-resources-to-regulate-crypto-and-technology-at-house-subcommittee-hearing/
