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US SEC Running Without Congress Authorization?


coingape.com 02 February 2023 08:56, UTC
Reading time: ~2 m

U.S. Securities and Exchange Commission (SEC) has been in line for its regulatory overreach on the digital asset market. It is alleged that the commission failed to prevent the horrible FTX collapse. However, the agency is eyeing a win in the XRP lawsuit after securing a summary judgment in the LBRY case.

SEC to face Congress review?

Eleanor Terrett, a Fox Business Journalist reported that the US SEC is set to face more scrutiny from Congress ahead. US Financial Services Committee has noted that the commission has not been reauthorized since 2015.

As per orders, Congress needs to review and make changes to a government agency during the Reauthorisation process. This is done to ensure that the agency is set to run efficiently, while it can achieve its stated purpose.

Congress makes sure that the agency is receiving the appropriate amount of funding from the government to run its operations. However, the US SEC reportedly received more than $2 billion in funding for the financial year 2023. Meanwhile, the commission’s authorization ran out back in 2015.

Gensler to testify?

This directly implies that the SEC chair, Gary Gensler, now must fight the Financial Services Committee probe. Gensler will have to prove that the commission is functioning correctly and that the fund received from the government is justified.

Terrett reported that the latest move by Financial Services Committee to reauthorize the commission is an initial sign of the GOP’s strategy to significantly crack down the agency.

According to the HFSC oversight plan, the committee will monitor all aspects of the US SEC operations, activities, and other initiatives. This will be done to ensure that the agency is fulfilling its mandate to protect investors.

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