US Securities and Exchange Commission (SEC) Chairman Gary Gensler has requested "new tools, expertise, and resources" in the regulator's 2024 budget to address misconduct in the cryptocurrency space. In his prepared testimony for a Senate Appropriations Committee hearing on July 19 , Gensler expressed support for the Biden administration's proposal to allocate over $2.4 billion to the SEC for fiscal year 2024. He highlighted the "wild west" nature of the cryptocurrency market, which is plagued with irregularities, as a key reason for the budget request.
With the additional funding, Gensler aims to increase the number of full-time SEC positions from 4,685 in 2023 to 5,139 in 2024. He emphasized that the rapid technological innovation in the crypto space has led to various forms of misconduct, necessitating more resources for effective oversight and enforcement. During the hearing, Gensler expressed openness to receiving even more resources if deemed necessary by the committee.
Gensler specifically requested an extra $70 million in the agreed budget to hire 170 more individuals for the committee, with a focus on bolstering enforcement efforts. He faced inquiries from lawmakers about the SEC's role in overseeing FTX, a bankrupt cryptocurrency exchange. Despite the recent ruling in the SEC v. Ripple case, where the court stated that XRP is not necessarily a security, Gensler's testimony indicates that his stance on enforcement oversight remains firm. The SEC chairman asserted that the committee will continue evaluating cases in the crypto space to ensure regulatory compliance.
