SEC Head Gary Gensler Seeks 8% Budget Boost to Work on Crypto Protection

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by Ibukun Ogundare · 3 min read
SEC Head Gary Gensler Seeks 8% Budget Boost to Work on Crypto Protection
Photo: Shutterstock

Gensler said that the SEC would need to work with token issuers and trading platforms to regulate the industry.

Head of US Securities and Exchange Commission (SEC) Gary Gensler requests a more robust budget to protect crypto investors. Gensler made his case during a congressional hearing. The SEC chair asked for an 8% budget boost to pursue his ambition of regulating crypto, thereby protecting investors. This is not the first time the SEC executive would be calling for more strict crypto regulation and lower risks for investors. Recently, he noted that the high risks of crypto investments could make investors lose interest in the system. This came after the crypto market had lost over 40% in weeks and the recent crash of the UST. The 0.5% interest rate hike contributed to the global market’s downturn.

SEC Chair Asks for an 8% Jump in Agency’s Budget

For the fiscal year, which ends on the 30th of June, 2023, the SEC has requested $240 million more than it sought in 2022. Precisely, the financial watchdog is asking for a budget of $2.15 billion for the fiscal year 2023.

While pushing for a higher budget to oversee crypto investors’ protection, the SEC head stated that the Commission is understaffed. Thus, he said the agency needs to hire more employees to appropriately cop the crypto space. According to the chairman, the agency has a little over 50 people who deal with crypto-related cases.

Speaking at the congressional hearing, Gensler said he wished there was “more to be able to dedicate to this.” He made an example of the UST crash, saying, “there was one crypto complex that went from $50 billion in value to zero in the last three weeks.” The SEC chair believes the UST tumble is one of the reasons for investor protection. After sending tremble across the crypto community, UST is currently down nearly 28% to $0.09091.

Once again, Gensler has sent out warnings to unregistered crypto exchanges. In response to Rep. Steeve Womack, who stated his displeasure with the SEC’s failure to create clear rules and regulations for crypto. He said:

“The crypto exchanges should come in and register, or frankly, we’re going to continue to bring, use what Congress has given us, in our enforcement and examination functions.”

Congressman Criticizes Gensler’s Budget Increase Request

Gensler’s request for a budget boost has attracted criticism from Congressman Tom Emmer. Tagging Gary Gensler in a tweet, he said:

“You put all of all SEC’s taxpayer funded resources into crypto crackdowns. Now you don’t have the funds to do your actual job so you’re coming to Congress more? You’ve got to be kidding me.”

Gensler said that the SEC would need to work with token issuers and trading platforms to regulate the industry. He is keen on providing anti-manipulation and anti-fraud laws and ensuring that there is no front running. According to Gensler, the SEC is also responsible for confirming the authenticity of order books. He said the agency would collaborate with the Commodities Futures Trading Commission (CFTC).

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Ibukun Ogundare

Ibukun is a crypto/finance writer interested in passing relevant information, using non-complex words to reach all kinds of audience. Apart from writing, she likes to see movies, cook, and explore restaurants in the city of Lagos, where she resides.

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