2 - 3 minute read
The United States Securities and Exchange Commission (SEC) is seeking additional funding to keep up with the increasing complexity in capital markets. The SEC Chair, Gary Gensler, has thrown his support behind U.S. President Joe Biden’s request to allocate a record $2.4 billion in funding for the regulator, with the majority of the additional funding going towards the enforcement and examination divisions. Gensler highlighted the need to crack down on “misconduct” in the cryptocurrency industry, which he describes as the “wild west” and “rife with noncompliance.”
The SEC’s enforcement actions in the crypto industry have been increasing year on year, with 30 actions resulting in $242 million in penalties in 2022, representing a 36% increase over the previous year. Gensler says that the regulator has received more than 35,000 separate tips, complaints, and referrals from whistleblowers and others, which has helped bring about these enforcement actions.
While the crypto industry has been gaining mainstream attention and adoption, it is still largely unregulated, and Gensler’s call for additional funding suggests that the SEC will continue to pursue regulatory action against bad actors in the industry. This could have implications for traders, as increased regulatory scrutiny could impact the value and volatility of cryptocurrencies.
It is important to note that trading carries a high risk, and traders should do their own research and seek professional advice before making any investment decisions. Additionally, traders should be aware of the potential regulatory risks associated with investing in cryptocurrencies, especially in the current climate where regulators are actively seeking to crack down on misconduct in the industry.
