More wheat to regulate. Sheriff Gensler is still determined to lay down the law in this crypto « Wild West ». True, the SEC (Security Exchange Commission) lost the first round following the judgment in its lawsuit against Ripplethe issuer of the XRP token. However, the Gary Genslerhis boss, still has several bullets in his gun. He is asking MPs for more funds to reinforce his action.
Millions of dollars to regulate the crypto « Wild West
The SEC boss doesn’t mince words when it comes to the crypto sector. He demonstrated this once again in his keynote address to the Senate Finance Committee (Senate Appropriations Committee the most important Senate committee in the US. It is responsible for allocating federal Treasury funds to state agencies from year to year.
Gensler a qualified the crypto sector of « Wild West »a Wild West that must be regulated at all costs. And you can’t blame Gary Gensler for displaying his a certain amount of motivation in the business. Since 2022, there has been a 9% increase regulatory actions targeting the crypto sector. More than 750 measures that have been taken against the market since last October. And to say the least, it’s a juicy business for the regulator. Indeed, these attacks have so far brought in 6.4 billion dollars in fines and penalties.
In order to keep up the momentum, Gensler asks the Members of Parliament for an extension to his budget. to fight the industry more effectively. SEC boss asks 109 million dollars additional budget to strengthen its teams. If approved by Congress, this would bring the SEC’s budget to 1.4 billion over the year.
« Because of the rapid technological evolution in the financial markets, we are seeing reprehensible behavior in emerging sectors, particularly in the crypto space. Tackling this will require new tools, expertise and resources. »
Gary Gensler
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The SEC wants to arm itself to continue its anti-crypto fight
Gensler profit also benefits from the favorable support of certain influential members of the Senate, for whom the FTX pill is hard to swallow. Senator Dick Durbin, the number two Democrat in the Senate, is one of them.
« They spend billions to buy rebranding rights on sports arenas and stadiums to gain credibility with American citizens and manipulate the prices of fake tokens with no underlying value. (…) It happens all the time. It doesn’t sound like America. »
Dick Durbin
Gary Gensler takes advantage of this support to ask for 393 million dollars to Congress. This « top-up » funding would cover the SEC’s technology costs, namely data analysis and cybersecurity work. The SEC boss argues his request:
« To put these numbers in context, these expenses are nothing compared to what the biggest players in the market are spending to evolve their technology. »
An astonishing comparison to make. It implies that public funds allocated to regulation should be equivalent to the private budgets of companies seeking to innovate. Something to ponder. If these budgets are provided to the SEC by Congress, spending over the year would rise from $4.7 billion to $5.1 billion. A handsome sum indeed. But don’t worry. These will probably be quickly repaid thanks to the numerous fines that Gensler is sure to levy on crypto companies, Binance and Coinbase on the front line.
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