Does the SEC have enough crypto specialists?

The SEC is supposed to keep the crypto sector under control. But the authority is understaffed to actually do that, according to a new report. Some of the facts at a glance.

The Securities and Exchange Commission (SEC) has wanted to restrict the crypto sector for some time. Studying all these cases obviously requires sufficient expert staff. From a report by the Office of Inspector General (OIG), there are not enough of them. Every year, the OIG reviews the internal conditions at other U.S. authorities.

According to the report, the SEC has an acute shortage of specialized personnel in crypto. The number of potential candidates is small, partly because the private sector often offers more attractive terms. On the other hand, of course, it is a relatively young market. Another reason for the low influx is due to internal ethics guidelines, the OIG says. Indeed, applicants who have invested in cryptocurrencies are excluded from the application process. SEC officials admit in the report that these regulations "detrimental" is for the recruitment of new employees.

In July, SEC Chairman Gary Gensler called for an increase in the SEC's budget from $4.6 billion to $5.1 billion. Of this, he wanted to use 109 million to regulate the crypto sector.

The crypto industry has long been at odds with the authority. Market participants have repeatedly asked for clearer rules and instructions from the SEC. And criticism is also growing from within its own ranks.