The U.S. Government Accountability Office (GAO) has issued three key enforcement recommendations to the U.S. Securities and Exchange Commission (SEC) in anticipation of the approval of spot Bitcoin exchange-traded funds (ETFs) granted on January 10.
Outlined in a recommendation to the SEC on December 15 and disclosed on January 16, the GAO's suggestions center around workforce management within digital asset markets and the regulatory approach to the evolving industry.
The GAO report advises the SEC to formulate new workforce plans aligned with its 2022-2026 strategic and performance plan. It emphasizes the importance of updating the strategy for fiscal years 2019-2022 to better meet future workforce needs and enhance oversight and policymaking related to crypto-assets.
Another recommendation targets the SEC's Strategic Center for Innovation and Financial Technology (FinHub), urging the center's directors to document policies, procedures, and establish internal controls. While FinHub coordinates the SEC's oversight of emerging technologies, the GAO noted a lack of documented policies and procedures, underscoring the need for internal controls.
Additionally, the GAO recommends that FinHub directors set objective, measurable, and targeted performance goals and measures. The absence of such benchmarks hinders the establishment of a clear framework for FinHub's performance in overseeing and regulating the cryptocurrency market.
The GAO's real-time status section monitors the SEC's response to each recommendation, emphasizing the need for comprehensive strategies and documentation to address the challenges posed by the evolving digital asset landscape.
