By
Steve Muchoki
May 9th, 2024
Meanwhile, the regulator is currently in several enforcement actions against popular exchanges including Coinbase and Binance.
The United States Securities and Exchange Commission (SEC) has found itself in a bit of a situation with its plans to hire crypto experts. This is according to a revelation by the SEC’s Supervisory Office of Inspector General.
Per the office, anyone who would be referred to as a crypto expert would naturally have some digital assets in their possession. However, the office has determined that this may stand in the way of them discharging their duties accordingly. So, for everything to work well, the SEC is seeking to hire only experts who are willing to sell their digital assets to get the job.
SEC Shares Reasons for Difficulty in Hiring Crypto Experts
It appears that, so far, the few people with the required level of knowledge about crypto have not been open to letting go of their crypto holdings. That is according to an October 31 report by the office. Part of the report reads:
“This prohibition, according to SEC officials, has been detrimental to recruiting, as candidates are often unwilling to divest their crypto assets to work for the SEC.”
Other than the willingness of the experts themselves, the SEC also faces other challenges. First off, there is only a limited pool of qualified candidates to draw from. Then there’s also very stiff competition from the private sector.
It should be noted, however, that the 25-page report did not only dwell on the SEC’s crypto challenges. Although it cited crypto as an “emerging area” that the SEC is paying special attention to, it also touched on other management and performance issues. Another area that the SEC claims to be focused on is artificial intelligence (AI).
Prepares to Adjust
It might be worth mentioning that the SEC seems to be attempting to do some internal reflections. While it may not exactly yield to all of today’s demands of the market environment, it certainly needs to modernize some of its rules and regulations to accommodate some.
The financial regulator admitted this itself as it acknowledged the rapid growth of crypto assets. Part of the report says:
“The SEC’s ability to remain an effective regulator requires that it continuously monitor the market environment, and as appropriate, adjust and modernize its expertise.”
The regulator is currently in several enforcement actions against popular exchanges including Coinbase and Binance.