SEC Chair Gensler Requests More Resources to Address Crypto Misconduct

SEC Chair Gary Gensler has called for “new tools, expertise, and resources” to address misconduct in the crypto space. In prepared testimony for a Senate hearing, Gensler said that the “Wild West of the crypto markets” is “rife with noncompliance.”

Gensler requested $2.4 billion in funding for the SEC in 2024, which would allow the agency to increase the number of full-time positions from 4,685 to 5,139. He also said that he hopes to get an additional $70 million in funding to add another 170 people to the commission, some of whom would focus on enforcement.

Gensler’s remarks followed a ruling in the SEC v. Ripple lawsuit in which a federal judge said XRP was not necessarily a security. Though the SEC chair said the commission would be assessing the case, his testimony before the committee suggested that his position may not have changed on regulation by enforcement.

“Our authorities at the SEC are quite robust — we could always use some more resources,” Gensler said. “If this committee were to see fit and want us to have more resources, we could use them.”

Gensler’s request for more resources comes as the SEC is facing increasing scrutiny over its handling of the crypto market. The agency has been criticized for its slow pace of enforcement actions and for failing to provide clear guidance on how it will regulate cryptocurrencies.

Gensler’s testimony is a sign that the SEC is taking the crypto market seriously. However, it remains to be seen whether the agency will be able to get the additional resources it needs to effectively regulate the market.