JAKARTA - On Wednesday, March 29, 2023, the US Parliament Allocation Committee held a hearing with the head of the US SEC, Gary Gensler, regarding the agency's budget for the fiscal year 2024. One of the main topics discussed was the challenges the SEC faced in overseeing the fast-growing cryptocurrency sector.
Gensler Wants Additional Resources For SEC
Gensler said the SEC needed more resources to fulfill its mission to protect investors, facilitate capital build-up, and maintain market integrity.
He stressed that the US capital market has grown significantly in recent years, both in terms of size, complexity and innovation. He also highlighted that the cryptocurrency market has become one of the fastest and most dynamic growth fields in the capital market.
Even so, Gensler admits that the SEC is currently "very limited" in its ability to investigate and enforce the law in the crypto sector. He said the agency only has about 200 people focused on digital assets, while there are about 6,000 crypto projects operating in the US. He also said that many crypto projects do not comply with existing securities regulations and pose risks to investors.
Therefore, Gensler asked Congress to provide the SEC with more resources to increase its staff, technology, and authorities in overseeing the crypto market. He proposed an 8 percent increase in the SEC budget from fiscal year 2023 to USD 2.1 billion (approximately IDR 31.6 trillion) for fiscal year 2024.
Denies Claims No Clear Crypto Guidelines
In addition to asking for more resources, Gensler also emphasized that the SEC has provided legal clarity for crypto market players. He stated that most of the coins and tokens offered and sold in the crypto market are securities based on the definition of federal law. Therefore, they must comply with the same disclosure and registration regulations as other securities.
Gensler also rejected claims that the SEC did not provide sufficient guidelines for crypto market players. He said the agency had published several reports and public statements about securities legal applications against digital assets. He also said that the SEC is willing to cooperate with crypto market players who wish to comply with regulations and seek permission or exceptions from the agency.
Gensler added that he is neither anti-innovating nor anti-crypto. He acknowledged that blockchain technology has the potential to increase efficiency and financial inclusion. However, he also stressed that innovation should not sacrifice investor protection and market integrity.
"I believe that this technology has the potential to be a catalyst for change. But we must also ensure that we protect investors and prevent illegal activities," said SEC chairman Gary Gensler.
The Parliamentary Allocation Committee's hearing with the head of the US SEC, Gary Gensler, provides insight into the agency's views and priorities in overseeing the cryptocurrency sector.
Gensler advocates for increased resources for the SEC to do its job better in protecting investors and maintaining market order. He also emphasized that the SEC has provided legal clarity for crypto market players and is willing to cooperate with those who wish to comply with the regulations.
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