• Gary Gensler, the head of the Securities and Exchange Commission (SEC), is asking Congress to grant more funding so his agency can investigate crypto companies.
• The SEC brought more than 750 actions against crypto companies in 2022, leading to nearly $6.5 million in penalty fees.
• Gensler believes additional funding would help him and his agents continue their investigations into the crypto arena.
Gary Gensler Asks for More Funds
Gary Gensler – the head of the Securities and Exchange Commission (SEC) – is asking Congress to grant the agency even more funding so he and his fellow agents can continue their investigations into the crypto arena. In a recent conference before the Subcommittee on Financial Services and General Government, Gensler described the crypto scene as “the Wild West” and asked that he be given funds to hire more employees so they can examine digital currency firms which are allegedly rife with non-compliance.
The SEC’s Division of Enforcement and Examinations
The Division of Enforcement and Examinations makes up roughly half of the agency’s staff and received more than 35,000 separate tips, referrals, and complaints from whistleblowers in 2022 alone. The Division brought more than 750 unique actions against crypto companies last year with nearly $6.5 million in penalty fees resulting from them all. When asked if they have enough resources to investigate, Gensler replied that they are stretched thin but could use additional funds for this purpose.
Genslers Proposal for Funding
Gensler hopes for additional funding as early as 2024 that would permit 170 new positions plus full-year funding for everyone hired by the agency in 2023. This way, he believes that everyone who needs to be investigated will be able to get properly looked at without overworking existing staffers or hindering new hires from being able to do their jobs effectively due to lack of funds or personnel numbers .
Going After Crypto Companies
The SEC has developed a plan called ‘Operation Crypto Sweep’ which targets fraudulent Initial Coin Offerings (ICOs) that don’t comply with securities laws set out by federal agencies such as itself or FinCEN (Financial Crimes Enforcement Network). It also investigates Pump & Dumps schemes where individuals falsely drive up prices on certain coins only then immediately sell off when prices reach an all-time high thus making a huge profit at someone else’s expense; these schemes have become increasingly popular over time as well .
In conclusion, Gary Gensler is asking Congress for additional funds so he and his agents can better investigate digital currency firms which are allegedly rife with non-compliance according to him. He believes they need more resources including personnel numbers if they want to adequately follow through on Operation Crypto Sweep while still investigating various other forms of financial fraud within this space too like Pump & Dumps schemes etcetera .