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SEC seeks increased budget to regulate volatile crypto markets.

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SEC ‌Chair Urges ⁤Increased ⁢Funding ‍to Keep Up with Market Challenges

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The​ Securities and ‍Exchange Commissioner (SEC) Chair, Gary⁣ Gensler, has expressed⁢ his support for the White⁣ House’s budget boost request⁤ for⁢ the stock⁢ market ⁢watchdog. ⁤However, ​he warned that the funds allocated‍ were ‍significantly⁢ less ⁤than what ​the agency ​had originally requested for ⁤the ⁣upcoming fiscal‍ year.

The ‍Senate Appropriations‌ Committee has‍ approved​ $2.4⁤ billion for the SEC, which‌ is ‌$194⁣ million more than‍ the previous⁤ fiscal year.​ However, it ​falls ‌short of Mr. Gensler’s ⁤initial⁢ proposal ⁤by nearly ‍$73 million. This⁢ shortfall, according to ⁢Mr. Gensler,⁢ would ⁤hinder the ‌SEC’s‌ ability to​ address ​the ⁣various market challenges it ⁤faces today.

Growing ‌Markets ‍Require Increased ​Resources

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During a recent Senate Appropriations Committee‍ hearing, Mr.⁣ Gensler emphasized the ⁢need for ‍increased resources to ‌meet the⁣ demands of a rapidly growing market. He ⁢explained‍ that the‍ SEC’s fiscal ⁤year‍ 2024 request ⁤would ⁤allow the⁣ agency⁢ to‍ expand⁢ its ⁤Examinations ⁢Division personnel to 1,144 full-time ⁢examiners. While the organization has​ grown ⁢by 3​ percent⁤ since ​2017, Mr. Gensler ​stressed‌ that the ⁣financial⁢ markets ⁢have experienced⁢ exponential ⁤growth during⁣ this period.

Mr. Gensler highlighted‍ the significant ‌increase in the ⁤number ‍of clients of ⁤registered investment ​advisers,​ which has surged close to 70⁣ percent from 34‍ million ⁢to​ 57 million. ​Additionally, average ⁣daily ‍trading in the ​equity ‍markets ⁣has expanded ‍from 30 million transactions ⁤to ⁤77 ‌million transactions. ‍This⁢ growth‍ and complexity in ‍the markets‌ also ​bring about ​more⁣ opportunities for wrongdoing, according to Mr. Gensler.

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Addressing Concerns in the ⁢Crypto⁣ Markets

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Mr. Gensler​ cited⁢ the⁣ “Wild West of ‌the crypto markets” as⁤ an example of⁢ the challenges the⁤ SEC ⁢faces. He ⁣revealed the ‍agency’s plans to implement​ new measures​ and‍ assets ⁢to ⁤address misconduct‍ within the‍ cryptocurrency industry.

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⁤ ‌ A Bitcoin⁣ mock-up on Jan. 12,⁣ 2022. ⁣(John Fredricks/The ‌Epoch Times)
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“Technology​ is also ‌rapidly⁤ transforming‍ our markets and business⁣ models, ​whether it’s ‍electronic trading, the cloud, artificial ‍intelligence, or​ predictive data analytics,” he said.⁣ “The Wild West ‌of‌ the crypto⁢ markets is rife ​with⁣ noncompliance, ‌where ​investors have put hard-earned assets ⁢at risk in⁢ a​ highly speculative‍ asset class.”

Mr. Gensler emphasized⁣ that with adequate ​funding,​ the ‍SEC can⁢ be ​a​ stronger advocate for ‍the​ American public, protecting both investors ‌and issuers. He⁤ believes that ‌the fiscal year 2024‍ budget request would​ provide the agency with ⁣the⁣ necessary ‍resources to ⁤fulfill its mission.

Pushback‍ From Lawmakers

During⁤ the hearing, ‌Mr. ⁤Gensler faced some⁢ pushback ‍from lawmakers, including Senator John Kennedy⁤ (R-La.), who questioned‍ the ​SEC’s actions regarding the‍ failed⁣ crypto⁤ exchange FTX​ and its former CEO, Sam‌ Bankman-Fried.

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Senator ⁤Kennedy‌ pointed out that the SEC‌ had the ⁤authority ⁣to regulate crypto before FTX caused havoc in the market.​ He‌ suggested that ‌the ‍SEC could have investigated⁣ the situation ‍earlier and prevented the incident ‍from occurring.

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Another lawmaker, Senator Richard‍ Durbin (D-Ill.), expressed concerns about ⁤the ‍SEC’s ⁢funding to monitor and⁤ regulate⁤ the​ crypto ⁢industry. Mr.‌ Gensler​ assured him that seeking additional ​funding ⁣was part of the ‌agency’s efforts⁤ to address these ​concerns.



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