US Senators Are Calling SEC For “Regulatory Malpractice”; Here’s Why

At a time when cryptocurrency market needs stable regulatory environment, the U.S. SEC officials are involved in activities of ‘malpractice’. According to recent reports, the SEC’s staff are leaving the regulatory body like never before. This trend is interestingly running a parallel with some of the outgoing SEC officials joining crypto companies. Meanwhile, the U.S. lawmakers have recently written to SEC chairman Gary Gensler seeking an explanation on the recent trend.

Quick Rule Making Leading To SEC Staff Quitting?

As per a recent Reuters report, the SEC staff are leaving the watchdog “at the highest rate in 10 years amid a flurry of proposed rules.” Referring to a public report on staff attrition, six U.S. senators wrote to Gensler seeking an explanation. The letter reportedly cited shorter timelines for industry feedback on rulemaking. Besides a reply on the SEC ‘regulatory malpractice’, the lawmakers also sought Gensler’s action plan on addressing the staff’s concerns.

Gary Gensler is known for his strict stance on regulating the crypto industry. In this context, the lawmakers’ action attains prominence. In a recent statement, however, Gensler said he would support the Commodity Futures Trading Commission’s (CFTC) supervision of cryptocurrencies. He made the comment in the context of the Congress’ decision to hand over crypto supervision to the CFTC.

SEC Officials: The Mass Shift To Crypto Companies

In what could be a shocking revelation in the current circumstances, an independent study reported huge outflow of SEC officials to crypto companies in recent times. As per the findings of the Tech Transparency Project, as many as SEC officials have recently quit to join crypto companies. This is in sharp contrast to the SEC’s efforts to bolster its workforce in its unit focused on crypto markets. The watchdog recently announced opening more positions for its unit responsible for protecting investors in the crypto markets.

The SEC’s Crypto Assets and Cyber Unit is focused on curtailing cyber-related threats in the crypto industry. The crypto unit claims to have successfully fought dozens of cases against those seeking to take advantage of investors in crypto markets.