The U.S. Security and Exchange Commission (SEC) is encountering a considerable roadblock in its quest to onboard crypto experts. This hiring predicament, as revealed in a recent agency document, stems from a combination of factors, including a limited candidate pool and a rather strict policy regarding the ownership of crypto assets.
Read More: SEC’s Odd Request: Coinbase Rejects Delisting All But Bitcoin
Crypto Candidates Unwilling to Divest
The crux of the SEC’s hiring difficulties lies in its own policies. As indicated in the document titled “The Inspector General’s Statement on the SEC’s Management and Performance Challenges,” published in October and updated on November 2, the agency has struggled to attract talent with expertise in the crypto assets. The primary reason? The SEC’s policies, which restrict employees from owning cryptocurrencies, deter potential candidates. Well, it should sound logical. Yet, it sounds logical to everyone except SEC.
One section of the document specifies, “… Many qualified candidates hold crypto assets, which the Office of the Ethics Counsel has determined would prohibit them from working on particular matters affecting or involving crypto assets … candidates are often unwilling to divest their crypto assets to work for the SEC.” It’s a catch-22: candidates with the desired expertise often can’t comply with the asset divestment rule.
SEC’s Defense
Fortune’s report provides a different perspective. An SEC spokesperson downplays the agency’s hiring issues, instead highlighting its steady hiring rate, low attrition rates, and its reputation as a “best place to work in government.” The spokesperson also underscores the SEC’s significant achievements in rulemaking and its efforts to tackle the challenges.
SEC: The “Leading Regulator” of the Crypto Sector
The SEC’s role in regulating the cryptocurrency sector is paramount. The agency is deeply involved in overseeing and enforcing regulations pertaining to cryptocurrency companies and products. Notably, the SEC has ongoing high-profile cases against major cryptocurrency exchanges like Binance and Coinbase, as well as other industry players.
Yet, it’s not all smooth sailing for the SEC. Ripple secured a partial victory concerning the sales of the XRP token in July, while Grayscale succeeded in gaining agency approval to review its proposed GBTC conversion in August.
Sooooooo
In the fast-paced and turbulent world of cryptocurrencies, the SEC’s challenges in hiring crypto experts represent a complex issue. Balancing the need for industry expertise with the imperative to adhere to its own policies is no small feat.
More on SEC:
- The SEC vs. NFTs: What You Need to Know
- Cryptocurrency Chaos: SEC Takes On Prager Metis Over FTX Audit Scandal
- Grayscale Wins the Court Battle Against SEC
- Power Drama at the SEC, Bank of China’s Crypto Leap, Bitcoin Football, and CPI Volatility
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