Ripple Labs Executives Raise Concerns Over US SEC’s 2024 Budget Request

Gary Gensler, the chair of the United States Securities and Exchange Commission (SEC), recently testified before the House Appropriations Committee to request a budget of $2.436 billion for the commission’s operation in the financial year 2024. However, Ripple Labs executives believe that this budget will lead to an increase in US SEC enforcement against the crypto market.

US SEC Calls for Increased Enforcement Amidst Record Number of Actions

In his address, Gensler mentioned that the SEC’s Division has brought in more than 750 enforcement actions in FY 2022, recording a 9% increase from the previous year. He added that these actions resulted in orders for $6.4 billion in penalties and disgorgement.

Gensler was asked whether the commission has the right resources to look into emerging crypto issues. The SEC chair stated that they are stretched thin and that the crypto space has a significant amount of non-compliance.

Ripple Labs Raises Concerns

Stuart Alderoty, Chief Legal Officer at Ripple, brought up the fact that the SEC’s $2.2 billion funding request includes $680 million just for 1,500 enforcement staff. He inquired how much of the fund is devoted to rulemaking and providing actual guidance to the market.

Susan Friedman, Head of Public Policy at Ripple, recalled  the SEC’s mission to maintain fair, orderly, and efficient markets in a tweet. However, she added that the regulator’s focus is on enforcement action over providing clarity to the market. This process is hurting markets and crippling capital formation in the US. Ripple Public Policy head hopes that Congress would take a critical look over this budget request and stop their support to the commission.