IG Report: SEC Lacks Legal and Technical Staff to Properly Regulate

A report from the Office of the Inspector General argues that the Securities and Exchange Commission chair, Gary Gensler, and the SEC staff lack the legal and technical knowledge to make rules for the markets, especially the crypto market, Coingape reports.

“This investigation also revealed that @GaryGensler’s disastrous leadership has triggered a mass exodus of staff expertise - over 20% of senior officials and attorneys are leaving the SEC. The American public deserves an SEC led by experts, not nonsense,” Congressman Tom Emmer of Minnesota said in a tweet Wednesday.

The investigation suggests that Gensler triggered a mass exodus of staff expertise.

More than 20% of the senior attorneys and officials have left the Commission, he added. The congressman asserted that the industry needs a regulator led by experts.

The investigation revealed that in Gary Gensler’s regime, the SEC peak staff occupancy across all the commission’s departments averaged around 7% this year. Tom Emmer commented that taxpayers are funding hundreds of millions of dollars to the SEC where no one is showing up to work.

Earlier, Coingape reported that there is a huge rift between the SEC executives over deciding the regulation on non-fungible tokens.

John Deaton, Amicus Curiae in the XRP lawsuit urged the Congressman to support the Empower Oversight referral to the IG for an investigation into proven ethics violation done by Bill Hinman. However, he asked to clean up the SEC.

XRP holders’ lawyer highlighted a section of the report which states that the SEC risked hiring attorneys who did not meet all qualifications. The Commission is not concerned whether a candidate has passed the bar before they start working there. The quality of control is on a constant decline.