No impact from the Ripple decision? SEC Chairman cites crypto risks in budget request

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U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler has called for new tools, expertise, and resources aimed at tackling misconduct in the crypto space in regulators’ 2024 budget request.

In prepared testimony for a July 19 Financial Services and General Government Subcommittee hearing with the U.S. Senate Appropriations Committee, Gensler said he supports the Biden administrations’ request to allocate more than 2.4 billion to the SEC for fiscal year 2024. The SEC Chairman cited the Wild West of crypto markets that was plagued by non-compliance among the reasons for the budget request.

With the funding, Gensler said he expects the SEC to increase the number of full-time positions from 4,685 in 2023 to 5,139 in 2024. According to SEC data, the enforcement division Commissions filed over 750 enforcement actions in 2022, but rapid technological innovation had led to misconduct in the crypto space.

Our authorities at the SEC are strong enough, we could always use more resources, Gensler said in response to questions raised by Illinois Sen. Dick Durbin. If this committee saw fit and wanted us to have more resources, we could use them.

SEC Chairman Gary Gensler addressing U.S. lawmakers during a July 19 hearing. Source: Credit Committee Live Stream

Related: US Lawmakers Propose SEC Chairman Consider Legislation, Not Crypto Enforcement Approach

The SEC chairman said he hoped to secure an additional $70 million in funding in an agreed budget to add 170 more people to the commission, some of whom would focus on enforcement. He was also questioned by lawmakers about the role of the SEC in overseeing bankrupt crypto exchange FTX.

Gensler’s remarks followed a decision in the SEC lawsuit against Ripple in which a federal judge ruled that XRP (XRP) was not necessarily a security. Although the SEC chairman said the commission would assess the matter, his testimony before the committee suggested that his position may not have changed on rule-by-enforcement.

Magazine: Crypto Regulation: Does SEC Chairman Gary Gensler Have the Final Word?

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