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Republicans on the U.S. House Committee on Financial Services, known as the Financial Services GOP, pointed out that the Securities and Exchange Commission has not been reauthorized since 2015. According to Fox Journalist Eleanor Terrett, the SEC will also be scrutinized as a result of this.
The @SECGov is set to face more scrutiny from Congress this year as the @FinancialCmte points out the agency has not been “reauthorized” since 2015. Reauthorization is the process by which Congress reviews and makes changes to a government agency or program in order to make sure
— Eleanor Terrett (@EleanorTerrett) February 2, 2023
Reauthorization is a mandatory process that analyzes and ensures that a government agency works efficiently and in alignment with its purpose. The process also determines the amount of government funding that should be allocated to the agency.
Despite the fact that the SEC has not been reauthorized since 2015, the agency has received $2 billion in funding for 2023. The chairperson of the SEC, Gary Gensler, should prove to the Financial Services GOP that the agency is running according to its purpose and that the funding it received is justified. Terrett also mentioned that this is an initial sign of the GOP’s plan to reign in the agency.
The Securities and Exchange Commission is quite vocal about its hard-hitting decision on cryptocurrency firms. It is evident from the Ripple vs. SEC case that it has been dragging on since 2020. The SEC had also advised cryptocurrency firms in early December to address any risks or material exposure to cryptocurrencies.
The outcome of the Ripple vs. SEC case has also been voiced as an important factor that will determine the future of cryptocurrency in the US. If the SEC reigns in on cryptocurrencies, the market, and the investors could likely face tighter scrutiny, which will destroy the decentralized nature of cryptocurrencies.