SEC Can't Find Crypto Policemen Due To This Pesky Rule

Zinger Key Points
  • Restrictions on crypto holdings deter qualified candidates from accepting positions within the SEC.
  • The SEC embraces telework to improve work-life balance, yet still battles with private sector compensation levels.

The U.S. Securities and Exchange Commission's Office of the Inspector General highlighted significant challenges faced by the agency in recruiting experts in the field of cryptocurrencies.

Due to ethical rules that prohibit staff from holding investments in the areas it regulates, the SEC struggles to hire qualified professionals who are often unwilling to sell their personal crypto assets.

This issue emerged amid a wider context of the SEC's efforts to strengthen its capabilities to oversee the rapidly growing and evolving crypto-asset markets.

The ethical prohibition has been cited as a notable obstacle in the recruitment process, as many candidates with the necessary expertise are active participants in the crypto market themselves.

This dilemma places the SEC at a disadvantage compared to private sector entities that offer competitive salaries and do not impose such investment restrictions.

These recruitment challenges come at a time when the regulation of digital assets is a hot topic, with the Benzinga Future of Digital Assets conference slated for Nov. 14, focusing on these very issues. The conference is expected to address the intersection of regulation and innovation in the digital assets space, providing a platform for industry and regulatory leaders to explore solutions for market oversight and consumer protection.

Also Read: Bankman-Fried's Father Paid Legal Bills With Alameda Research Money Gifted To Him: Report

Furthermore, the SEC Inspector General's statement touches on other recruitment and retention issues, such as competitive private-sector wages and limited opportunities for advancement within the agency.

While the SEC has implemented measures such as telework policies to enhance work-life balance and retain talent, the competition with private sector compensation remains a significant challenge.

The transition to a hybrid workplace post-COVID-19 has also been identified as a factor affecting the SEC's operational dynamics.

The agency reduced its physical office space, resulting in cost savings and reflecting a broader shift toward flexible work arrangements.

This hybrid model was anticipated to continue, with the SEC and its employees recognizing the benefits of telework for recruitment, retention and operational resilience.

Read Next: Prosecution Slams Sam Bankman-Fried's 'Jewelry Store' Defense In FTX Fraud Case

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Posted In: CryptocurrencyGovernmentSECMarketscrypto regulationsDigital Assets
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