- SEC is set to receive the lowest budget since FY 2023 in FY 2025.
- US Senate Committee on Appropriations has set a budget of $2.23 billion for the SEC.
- SEC Chair Gary Gensler requested $2.594 billion earlier this year.
The United States Securities and Exchange Commission (SEC) will receive its lowest budget since FY 2023 thanks to the increased overspending under the Chairmanship of Gary Gensler. Last week, the US Senate Committee on Appropriations marked up the agency’s funding for FY 2025 and while Gensler requested $2.594 billion, the bill only allotted him $2.23 billion.
As highlighted by Fox Business journalist Eleanor Terrett in a post on social media platform X (formerly Twitter), the SEC Union’s memo said that the agency had to cut staff benefits and salary increases this year following Chairman Gensler’s increased spending on “other things in FY ‘23 and ‘24,” adding:
“In effect, Chair Gensler wagered with your compensation and benefits, knowing that his staff would suffer the consequences if he lost the bet.”
It seems that the regulation of enforcement approach towards cryptocurrencies took a heavy toll on the SEC’s financial condition. Litigations against various firms like Ripple, Coinbase, and others are currently ongoing with the agency draining millions in legal fees and the cases continue to drag on.
The SEC filed a lawsuit against American fintech firm Ripple in 2020 and the case has been dragged on for four years with Ripple securing a partial victory in 2023. However, the settlement between the two entities hasn’t yet even begun despite speculations from digital asset enthusiasts.
With the Democrats-led Senate proposing to give the agency its lowest budget since FY 2023 and the upcoming presidential elections, the crypto space is currently at a critical juncture. According to Polymarkets, Democratic candidate and Vice President Kamala Harris has quickly closed the gap between her and Republican candidate Donald Trump’s chances of winning the election. Harris has a 43% chance of winning while crypto-favorite Trump has a 54% chance of securing a victory.
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