The U.S. Securities and Exchange Commission (SEC) announced on May 31, 2025, its plan to freeze its budget for the upcoming year and significantly reduce staff, following a loss of 15% to 19% of its workforce earlier this year. Around 600 employees have taken resignation offers, driven by President Trump and Elon Musk’s push to streamline the federal workforce. This leaves the SEC with a $100 million surplus, which the agency says may be needed due to uncertainties, such as potentially absorbing duties from a U.S. audit watchdog facing elimination.
The staff cuts have sparked concerns about the SEC’s ability to oversee the $100 trillion U.S. capital markets, especially in the fast-evolving crypto sector. Posts on X suggest that a leaner SEC might struggle with enforcement, potentially allowing more market manipulation and fraud to go unchecked.
Critics argue this could raise risks for investors, especially as the SEC has already scaled back its crypto enforcement unit. Meanwhile, the agency is under pressure to reorganize, with regional director roles eliminated and office leases in cities like Los Angeles terminated. Stay updated on regulatory shifts impacting markets by following #MiningUpdates
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