The United States Securities and Exchange Commission (SEC) is seeking an additional $158 million from Congress in the federal budget for the next fiscal year. This request is driven by the “significant growth and change” in the country’s markets, including the volatile world of crypto markets.
In the SEC’s Congressional Budget Justification report released on March 11, SEC Chair Gary Gensler highlighted the need for increased funding due to the rapid transformation of technology in the markets and business models. Gensler emphasized that these changes create more opportunities for wrongdoing, and the SEC, as the regulatory authority, must have the resources to combat bad actors.
To address these challenges, the SEC plans to expand its workforce across various divisions. In 2025, the SEC aims to have 5,621 positions, an increase from the targeted 5,473 positions in 2024. The Division of Examinations (EXAMS), responsible for compliance checks, is seeking funding for an additional 23 positions to better address evolving risks, including crypto assets and emerging financial technology.
The Office of Investor Education and Advocacy (OIEA), which interacts with retail investors, has requested one more position to handle inquiries and complaints related to fraudulent activities involving crypto asset securities.
The SEC’s Office of the General Counsel (OGC), which oversees its legal team, also requires two additional positions. One position is needed to handle the growing number of civil and administrative litigations against the Commission, while the other will support the whistleblowing program, which has experienced a significant increase in submissions.
In its 2023 performance report, the SEC claims to have met or exceeded 28 out of 36 performance targets. However, it fell short on six targets and lacked sufficient data for two. These targets encompass various aspects, including the number of examinations conducted and the success rate of lawsuits filed by the SEC.
These performance targets align with the three goals outlined by Chair Gensler in the agency’s four-year plan, which aim to protect the public against fraud, establish a robust legal framework, and promote diversity within the SEC’s workforce.
In terms of crypto-related enforcement actions, the SEC reported 46 litigations or administrative proceedings in 2023, more than double the number in 2021 when Gensler assumed the chairmanship. However, these actions accounted for less than 6% of the total 784 actions undertaken by the SEC that year.
Overall, the SEC’s request for additional funding reflects the evolving nature of the markets and the need to stay ahead of potential misconduct. Chair Gensler’s vision for the agency emphasizes the importance of effective regulation in the crypto sector.