From Mockery to a Highly Active Regulator
A few months ago, the Securities & Exchange Commission of the US (SEC) was hardly taken seriously by anyone. Even Government officials as well as Senators also criticized the regulator for failing to do its job effectively.
SEC’s Chairman, Gary Gensler, was heavily criticized when he couldn’t come up with the much-needed ‘crypto regulation’ in the US crypto market.
US lawmakers held Gensler directly responsible for not being able to lay down the legislation. Gensler was literally scolded by the lawmakers in the United States when he was summoned to answer before the Congressmen.
When crypto entities started to collapse one by one, even then SEC and its Chairman were both criticized from government quarters.
Some even accused Gensler of letting FTX and Terra Luna fall under his watch. These were huge allegations against Gensler, although he had been going after many projects within the crypto-verse.
He was blamed for not doing much in the particular sector to bring in strong legislation towards the crypto industry.
It seems that FTX was the breaking point for SEC and its Chairman. It was soon after FTX’s collapse that SEC started to take its responsibility very seriously.
Within a span of a few days, SEC identified many violators in the crypto industry and initiated actions against them robustly. The regulatory authority became very aggressive and was not ready to let any project go without bringing them under the microscope.
The regulator also tightened its scrutiny radar of the crypto industry, crypto derivative products, and service providers.
SEC seems an entirely new entity that is now a more vigilant, careful supervisor and a response regulator.
SEC Is In Need of Funds For Improving Its Services
Gensler said recently that SEC is in desperate need of funds to be supplied by the Federal Government.
He explained that the funds are required by SEC to equip itself for understanding the complexities brought in by capital markets.
When he was asked whether he had any specific figure of funding in his mind, Gensler revealed the figure to be $2.4 Billion.
SEC’s Chairman also supports Joe Biden’s earlier statement in which the premier had requested the administration to sanction funds to SEC.
President Biden had also suggested that $2.4 Billion be provided immediately so that SEC can improve its advances in better regulating.
President Biden was of the view that the industry is housing a large number of mal-practitioners.
The stance of President Biden was reiterated by SEC Chairman who expanded it to suggest that mal-practitioners should be taken down immediately.
On other hand, Gensler had said in a public gathering that the atmosphere encouraging ‘misconduct’ is expanding disturbingly.
Funds Needed Also For Accelerating Innovation
On 29th March 2023, US Senate held a budget hearing which was also attended by SEC’s regulator.
In this hearing, Gensler submitted an official request on behalf of the SEC related to the sanction of funds.
He told House Appropriations Committee that additional funding would be needed for picking up and accelerating the pace of technology and innovation.
Gensler explained that it is due to the technological advancement which has pushed the industry into misconduct.
He stated that the most affected industries by such ‘technology-driven misconduct’ include conventional industries as well as crypto and emerging markets.
In the end, he urged the Committee to look into the matter and ensure providing of funds to SEC.
He said that the availability of funds would help SEC obtain advanced tools, develop expertise, and utilize resources efficiently.
SEC’s Targeted Expansion
It was revealed earlier that SEC wanted to expand its regulatory oversight which could only be possible by hiring additional hands.
It was therefore proposed by SEC that it needed at least 170 fresh talent who can be trained to pursue SEC’s mission profoundly.