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SEC – budget 2024
Yesterday, Securities Exchange Commission (SEC) Chair Gary Gensler testified about his agency’s budget for 2024 in front of the House Appropriations Subcommittee on Financial Services and General Government.
The Chair indicated in his prepared testimony that his agency will need 170 additional full-time “equivalents” for 2024 which will bring the SEC’s total employee base to approximately 5,139 FTEs.
As for crypto, “rapid technological innovation in the financial markets has led to misconduct in emerging and new areas, not least in the crypto space. Addressing this requires new tools, expertise, and resources” and translates into 1,434 total FTEs in the enforcement division alone for 2024.
SEC – enforcement business
Gensler also said in his prepared testimony that 750 enforcement actions in FY 2022 resulted in $6.4 billion in penalties and disgorgement.
With 1,311 FTEs in enforcement in 2022, each SEC employee generated about $4.8 million. That’s a good business.
Tip: To give a sense of crypto’s relatively diminutive scale versus TradFi and the SEC’s enforcement team which is generating $6.4 billion a year, Aave is the largest DeFi lending market by Total Value Locked (TVL) at ~$8 billion according to FS Insight.
Continue reading “SEC Chair Gensler Delivers Budget for 2024; Treasury’s Liang Says Crypto Not Cause of Bank Collapses”