In March 2024, the US SEC asked Congress to appropriate an additional $158 million in federal funds.
According to the Congressional Budget Justification, this funding will resolve several issues, including cryptocurrency market regulation. Regulators plan to use some of the money to find new employees and fund lawsuits facing the agency.
SEC Chairman Gary Gensler has called the cryptocurrency industry the “wild west.”
“From Reddit forums to celebrity influencers, we have seen a dynamic shift in communication with investors. Additionally, compliance violations are rampant and investors struggle with highly speculative asset classes. We have seen the wilds of the crypto market where people are putting their hard-earned assets at risk.”
Gary Gensler, SEC Chairman
The SEC's total budget for 2024 is $2.4 billion. For further activities in 2025, the regulator requested $2.5 billion. Gensler said these changes have significantly increased the likelihood of committing a crime. He likened the SEC to a police force that must be able to confront adversaries.
The agency plans to expand its workforce to 5,473 people this year. The regulator's review department will create 23 more positions to strengthen its ability to manage the material risks associated with crypto assets and new financial technologies.
During his tenure as SEC Chairman, Gensler has focused on illegal activities involving cryptocurrencies and emphasized the need to regulate cryptocurrencies. He also pointed out the volatility of this asset class and the risks it poses to investors.
Last month, Gensler complained that Bitcoin (BTC) had the lion's share of the ransomware market. Despite the agency's approval of 11 spot Bitcoin ETFs, Gensler continues to maintain a negative attitude towards Bitcoin.
