The U.S. Securities and Exchange Commission is asking Congress for an additional $158 million from the federal budget next year to address "significant growth and change in our markets," including the "Wild West of cryptocurrency markets."
The March 11 Congressional Budget Justification - a document outlining the SEC's budget needs for the upcoming fiscal year 2025 - requests $2.594 billion for 2025 - up from the $2.436 billion requested for 2024.
"Technology is rapidly changing our markets and business models," wrote SEC Chairman Gary Gensler in the 148-page document, which outlines the demand for money and includes a report on last year's results.
"There have been dynamic changes in communications with and between investors, from Reddit forums to influential personalities. What's more, we've seen the Wild West of cryptocurrency markets, replete with non-compliance, where investors put their hard-earned assets at risk in a highly speculative asset class."
Gensler said the changes mean "more opportunities for wrongdoing," and the SEC "as the policeman at the pulse [...] must be able to confront bad actors."
The SEC said some of the additional funding was needed to increase staffing across all its divisions. It now plans to reach 5621 positions in 2025, compared to a target of 5473 positions for 2024.
The regulator's Examinations Division (EXAMS) - its compliance checking division - wants to fund 23 more positions to strengthen its ability to deal with "critical and evolving risks," including "crypto assets and emerging financial technologies."
The Office of Education and Advocacy for Retail Investors (OIEA) has asked for one more position that would "focus primarily on handling questions and complaints related to crypto asset securities fraud."
The SEC's Office of General Counsel (OGC), which is headed by an army of lawyers, said it needed two additional positions - one to help with the "continued increase in civil and administrative proceedings brought against the Commission," and another to support whistleblowing in a program that has seen "significantly higher volume."
