The U.S. Securities and Exchange Commission (SEC) proposed a large increase in its budget, alongside staff growth, to ensure supervision over the use of crypto assets and AI in the financial sector.
The SC´s fiscal year budget plan for 2025 includes the addition of 23 new team members to the division for examinations and 33 more to the enforcement division‘s board. The agency attributed the need for faster-paced regulation to the circumstances of the Wild West market and instantly addressed the potential misconduct.
“In its role, the SEC must be ready to act against those who want to be on the bad side of the law,” the SEC added, having on its agenda improving the crypto fraud education resources for investors. The allocation is in line with what the SEC is doing, which could be seen in recent enforcement actions against Coinbase, Binance, and Kraken as major exchanges.
The SEC is also scrutinizing other areas, like crypto, which requires development and enhancement of its oversight competencies. The rise of AI and the changing scenarios of investor interaction through sources like Reddit forums are the issues that have brought about these investments to merge funds.
In addition to the Federal Reserve, the Kinsley Department and the Commodity Futures Trading Commission (CFTC) are also federal agencies. The Federal Reserve is seeking budget increases to treat the danger of digital assets and technologies of the latest generation in their jurisdictional area.
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