- A U.S. government report found that the SEC faces difficulty hiring crypto experts.
- Professionals were reportedly reluctant to divest their crypto holdings to work for the agency.
- The report cited conflict of interest laws and competition from the private sector, hurting expert recruitment.
The United States Securities and Exchange Commission (SEC) is facing difficulties in hiring qualified crypto asset experts, a report from the Office of Inspector General (OIG) has revealed. The OIG report on the management and performance challenges faced by the SEC has outlined the difficulties faced by the agency in recruiting qualified crypto experts.
The SEC has ongoing cases against multiple entities in the crypto domain, including Ripple, Binance, and Coinbase. Against a backdrop of a mounting number of cases, the SEC is reportedly finding it challenging to hire experts in the field of crypto. The agency statutes require professionals to sell their crypto assets to work for the agency.
The report cited a small number of candidates in the talent pool along with high competition from the private sector as factors hampering recruitment. Moreover, the report found that professionals were reluctant to divest their crypto holdings. The strict conflict of interest laws, which mandate divestment of crypto assets, thus rule out many qualified professionals from working in the SEC, the report found.
Overcoming challenges in hiring would be critical for the agency as it prepares to expand its oversight of the crypto market. The report stated,
The SEC also faces challenges in recruiting specialists in crypto assets, which Enforcement considers critical to strengthening its capabilities to investigate new and emerging issues in crypto-asset markets.
The absence of judicial precedence is also mentioned in the report. “Even judges in the same district can reach inconsistent decisions on similar facts or issues,” said the report. This issue could lead to inconsistent judgments and could affect the SEC’s enforcement decisions.
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