Breaking: US SEC Under Top Congress Panel Probe Over Key Hirings

Crypto News: The US Securities and Exchange Commission (SEC) is under the scanner of a key oversight committee of the US House of Representatives. The probe is regarding the agency’s potential violation of the Intergovernmental Personnel Act (IPA), which allows federal regulatory agencies to temporarily hire workers from non-federal government departments. Meanwhile, it remains to be seen if the SEC’s Division of Enforcement is also under the Committee’s investigation.

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Also, the Committee Chair James Comer said in a letter that the US SEC’s hirings of division heads in long term positions appear to undermine the IPA. Thus allegation comes after the recent questioning of the US SEC Chair Gary Gensler by the Financial Services Committee.

What About SEC’s Crypto Unit?

Under the SEC’s Division of Enforcement, the Crypto Assets and Cyber Unit is responsible for protecting investors in crypto markets and from cyber-related threats. In recent times, the agency focused on increasing the manpower in the crypto unit, amid heightened enforcement actions against the businesses like Binance and Coinbase.  In May 2022, the SEC allocated 20 additional positions to the unit, in an effort to boost the enforcement actions. However, the latest letter addressed to Gensler by Chair Comer did not mention employees in the enforcement division.

According to the letter dated August 1, 2023, the Committee on Oversight and Accountability of the House of Representatives is conducting oversight of the SEC’s use of the IPA.

“Excessive use of the IPA raises concerns about employee qualifications, conflicts of interest, and continuity of operations within the Commission.”

Hence, the committee asked the SEC to submit documents related to the use of IPA. The Committee on Oversight and Accountability is the principal oversight committee of the US House of Representatives.

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