SEC Inspector General says prohibition on crypto ownership hinders agency hiring
The Office of the Inspector General (OIG) of the United States Securities and Exchange Commission (SEC) has released its annual examination of the most serious management and performance challenges facing the agency. Crypto was on its list, as no surprise to anyone in the crypto community.
The OIG’s “Statement on the SEC’s Management and Performance Challenges” noted the agency’s previous statements about the lack of disclosure and “widespread noncompliance with existing securities laws by crypto asset market participants.”
The existing law leaves gaps in oversight related to crypto assets that are not securities and certain stablecoins. There have been calls for comprehensive legislation and interagency coordination. In addition, the report said:
Those facts are well known. Employment issues in the SEC are less publicized. The report said the agency has been trying to add crypto specialist positions in its examinations, trading and markets, and enforcement divisions. The Office of the General Counsel and the Office of International Affairs are also seeking new to fill new crypto-related positions.
Related: Coinbase political initiative features US lawmaker who admitted to ethics violations
The SEC’s hiring efforts have been frustrated by a small candidate pool and high competition with the private sector for crypto specialists. Many potential candidates hold crypto assets, the report continued:
This disqualifies them from working for the agency under a determination by the Office of Ethics Counsel. The OIG is planning to give SEC recruitment practices more scrutiny in FY 2024, it said.
The OIG reacts to outside requests for investigation as well as implementing internal examinations, although it is characteristically slow
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