SEC adds to cryptocurrency regulation staff
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Tuesday was a big day for the Securities and Exchange Commission. It announced that its team responsible to protect investors in cryptocurrency markets will nearly double.
For a total 50 positions, the Crypto Assets and Cyber team of regulators, which is part of SEC’s Enforcement division, will see an increase in its head count of 20.
Wall Street’s most powerful law enforcement officer stated that 20 new additions would include trial attorneys and fraud analysts, as well as investigator staff lawyers. Both SEC Chair Gary GenslerGurbir Grewal, Enforcement Director, applauded these hires. They were long overdue and crucial to the regulation of one of Wall Street’s most popular and newest industries.
Gensler released a statement saying that SEC’s Crypto Unit “has brought many cases against investors seeking to profit from crypto markets.” The SEC is doubling its size to be better equipped for crypto market police and will continue to address cybersecurity disclosures and controls.
Grewal said that the majority of victims of fraud related to crypto-related securities are individual investors. He said that cyber threats still pose “existential” risks to the U.S. banking system.
Grewal stated in a statement that “The Cyber Unit and Crypto Assets will be at forefront of protecting investors and ensuring fair and ordered markets in the face these critical challenges.”
Gensler had complained to legislators nearly 8 months ago that the agency required more staff to deal with the increasing volume of complex financial technology.
Gensler, D-Nev. in September, told Senator Catherine Cortez Masto that the regulator could use “a lot more people”Some 6,000 brand new digital projects will be regulated and assessed.
Gensler said that there was not enough protection for investors in crypto finance, issuance and trading. It’s more like the Wild West, or the old world where ‘buyer beware,’ which existed prior to the enactment of the securities laws, Gensler said.
The SEC representatives did not respond to an inquiry by email regarding whether or not the additional 20 hires were sufficient to meet the demand for more staff.
Gensler’s ambitious regulatory agenda has been a hallmark of his tenure as the SEC leader since Gensler was confirmed in April 2021 by the Senate.
He has advocated for possible rule changes to brokers who sell customer orders. climate disclosures from corporationsa stricter control of the rapidly-growing cryptocurrency market.
Gensler has received praise from President Joe Biden as well as other Democrats, but Republicans have criticised his efforts to limit innovation and be partisan.
“As for the people you control and the businesses you manage, would you consider yourself their father?” Sen. John Kennedy, R-La., asked Gensler in September. “Why are you trying to impose your individual preferences on cultural and social issues upon companies and consequently their customers and workers?”
Gensler stated that investors want to know more about what the company is doing regarding climate change risks and the potential for theft by bad actors.