SEC Seeks Funding From Congress for Crypto Cases

The United States Securities and Exchange Commission (SEC) is seeking additional funding from Congress to address the evolving landscape of financial markets, particularly emphasizing the challenges posed by the rapidly expanding realm of cryptocurrency. 

In its March 11 Congressional Budget Justification for the upcoming 2025 fiscal year, the SEC is requesting an additional $158 million, bringing its total budget to $2.594 billion, up from $2.436 billion in 2024.

As reported earlier by TheCoinRise, Ripple’s legal chief, Stuart Alderoty, has been vocal in critiquing the SEC’s recent legal challenges, framing this event as part of a pattern of setbacks for the agency. 

SEC Seeks Additional Funding

SEC Chair Gary Gensler highlighted the transformative impact of technology on markets and investor communication, citing phenomena such as Reddit forums and celebrity influencers as significant drivers of change. 

Moreover, Gensler pointed to the “Wild West” nature of the crypto markets, characterized by noncompliance and speculative behavior, posing risks to investors’ assets.

Sufficient Resources to Combat Bad Actors

Acknowledging the heightened potential for wrongdoing in this evolving landscape, Gensler emphasized the SEC’s role as the watchdog, needing sufficient resources to combat bad actors effectively. 

The proposed increase in funding would support staffing across various divisions, with a target of 5,621 positions in 2025, up from 5,473 in 2024.

SEC Hiring for 23 Additional Positions

The SEC’s Division of Examinations (EXAMS) aims to bolster its capabilities with 23 additional positions, focusing on addressing emerging risks associated with crypto assets and financial technology. 

The Office of Investor Education and Advocacy (OIEA) seeks to enhance its capacity by adding one position dedicated to handling inquiries and complaints related to fraud involving crypto asset securities.

Additionally, the SEC’s Office of the General Counsel (OGC) is requesting two additional positions to manage the growing workload in civil and administrative litigation, as well as to support its whistleblowing program, which has experienced a surge in activity.

Intensified Focus on Crypto

Despite facing challenges, the SEC claims to have met or exceeded 28 of its 36 performance targets in 2023, aligning with its overarching goals of protecting against fraud, establishing a robust legal framework, and fostering diversity within its workforce. 

Notably, the SEC significantly escalated its enforcement actions related to cryptocurrency, with 46 cases in 2023, reflecting the agency’s intensified focus on regulating this burgeoning sector.

As the SEC seeks increased resources to address the complexities of modern financial markets, including the burgeoning crypto landscape, its proposed budget underscores the imperative of regulatory vigilance and adaptability in safeguarding investors’ interests and maintaining market integrity.