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SEC demands $158 million increase in 2025 budget proposal to address cryptocurrency market challenges

The budget increase is expected to enable the hiring of additional experts, the development of technology for monitoring and tracking crypto transactions, and increased enforcement activities.

Date: 2024-03-20 Author: Marek Stiller
SEC demands $158 million increase in 2025 budget proposal to address cryptocurrency market challenges

The U.S. Securities and Exchange Commission (SEC) is seeking an additional $158 million for its 2025 budget to deal with the growing complexity of financial markets, particularly the challenges arising from the cryptocurrency sector.

The U.S. Securities and Exchange Commission is requesting a budget increase

According to the SEC’s March 11 Congressional Budget Justification, the agency is requesting a total budget of $2 .594 billion for fiscal year 2025, up from the $2.436 billion requested for 2024.

In a 148-page document, U.S. Securities and Exchange Commission Chairman Gary Gensler stressed that rapid technological advances are changing markets and business models, citing the emergence of new communication channels such as Reddit forums and influential personalities.

In addition, he highlighted the difficulties faced by cryptocurrency markets, describing them as the “Wild West,” characterized by speculation and non-compliance with regulations. Gensler said the U.S. Securities and Exchange Commission must be strengthened to effectively combat potential abuses.

The increased funding will be used for staff development in all branches of the agency, with a target of 5621 positions in 2025, up from 5473 in 2024. The expansion requires hiring, with a particular focus on increasing oversight in areas such as cryptocurrencies and emerging financial technologies.

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Specifically, to address the unique risks of the cryptocurrency market, the Examination Department is seeking 23 additional employees. In addition, the Office of Investor Education and Advocacy (OIEA) plans to create a new position on cryptocurrency securities fraud.

The Office of General Counsel (OGC) supports this development, as two additional positions are needed: one to increase the number of lawsuits against the Commission, and another to strengthen the whistleblower program, whose activity has increased exponentially.

Gensler said that the regulator “received more than 35,000 separate tips, complaints and referrals from whistleblowers and others in fiscal year 2022,” and that this “resulted in orders totaling $6.4 billion.”

Thirty of these actions involved the cryptocurrency industry, resulting in fines of $242 million. This represents a 36% increase over the 22 actions announced in 2021.

Despite failing to meet some performance targets, the US Securities and Exchange Commission reported an increase in the number of enforcement actions related to cryptocurrencies. The commission highlighted the agency’s continued efforts to protect investors and maintain the integrity of the cryptocurrency market.

Warning the public against fraud, establishing a robust regulatory framework and fostering diversity in the workforce are Gensler’s strategic goals for the agency in the years ahead.

As of 2021. The U.S. Securities and Exchange Commission initiated 46 enforcement actions involving cryptocurrencies in 2023, more than double the number in 2021. Although they accounted for just 6% of the 784 actions that year.

In its 2023 performance report, the U.S. Securities and Exchange Commission said it met or exceeded 28 of 36 performance targets, with six falling short of expected goals and two lacking sufficient data.

These targets include various aspects, such as the number of examinations conducted and the success rate of litigation. Despite its overall performance, the SEC noted that it did not meet its target litigation success rate.

Cornerstone reported that roughly half of the 108 lawsuits filed since 2013 have been resolved by the courts. Cases against major exchanges, including Binance, Coinbase, Terraform Labs, Ripple and Kraken, are still pending.

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Marek Stiller
Marek Stiller
Founder of the "Cryptocurrency for Beginners" channel on YouTube. He collaborates with Łukasz to form the Arena Trading group, while at the same time being passionate about blockchain technology. His knowledge and experience in the cryptocurrency industry help beginner investors better understand this dynamic market.
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