The U.S. Securities and Exchange Commission (SEC) is reportedly having difficulties recruiting cryptocurrency professionals due to agency rules around personal digital asset holdings.
The SEC’s Office of Inspector General disclosed that candidates’ unwillingness to sell their cryptocurrency holdings has been a significant obstacle in the hiring process.
“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,” the Inspector General’s office stated in a report dated Oct. 31.
The SEC, currently involved in enforcement actions against prominent exchanges such as Coinbase and Binance, also faces a limited pool of qualified crypto experts and stiff competition from the private sector for these specialists.
The report further stated that the SEC must continue to monitor market dynamics and adjust its expertise, regulations, and oversight tools to stay effective. The rapid growth in crypto assets was highlighted as one of the ‘evolutionary risks’ the regulator must tackle.
The report also brought up the lack of consistent caselaw regarding cryptocurrencies, a situation that could potentially impact the SEC’s enforcement decisions. This comes on the heels of various court rulings and the recent SEC lawsuit against Ripple Labs
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