During a recent hearing House Appropriations Committee, Securities and Exchange Commission (SEC) Chair Gary Gensler called for greater resources to address the growing issue of non-compliance in the crypto market.
Gensler admitted that the SEC is currently "stretched thin" when it comes to investigating emerging crypto issues.
He acknowledged that the agency has increased resources in the field but emphasized that more could be used to effectively combat non-compliance.
In his testimony, Gensler described the current state of the crypto markets as the "Wild West," where non-compliance is rampant and investors' assets are exposed to high risks in a speculative asset class.
He stressed the need for the SEC to grow along with the expansion and increased complexity in the capital markets to match the capabilities of bad actors.Gensler's testimony also touched on the existing regulations that apply to digital assets, stating that securities regulations already encompass disclosure requirements for those attempting to raise funds.
Rep. Sanford Bishop had asked Gensler whether the SEC had plans to issue a rule clarifying how securities law applies to digital assets during the hearing on the SEC's budget.
As the market continues to grow and evolve, the SEC faces increasing pressure to ensure compliance and protect investors from potential risks.