The Securities and Exchange Commission’s Office of Inspector General, responsible for overseeing the financial regulator, reports that the agency is struggling to hire crypto experts who are reluctant to part with their digital assets in exchange for a job.
In a report dated October 31, the office stated, “Many well-qualified candidates possess crypto assets, which, according to the Office of the Ethics Counsel, could disqualify them from working on matters related to crypto assets.” SEC officials note that this restriction has hindered recruitment efforts, as potential candidates are often unwilling to divest their crypto holdings to join the SEC.
Furthermore, the regulator, currently involved in enforcement actions against major exchanges like Coinbase and Binance, faces challenges due to a limited pool of qualified experts and strong competition from the private sector.
These findings are detailed in a 25-page report that highlights the top management and performance challenges faced by the SEC. Crypto, along with artificial intelligence, is recognized as an “emerging area,” presenting unique challenges for the regulatory body.
