Recruiting Challenges for Crypto Experts at the SEC
The U.S. Securities and Exchange Commission (SEC) is currently facing difficulties in recruiting cryptocurrency specialists, as highlighted in a recent report from the agency’s Office of Inspector General. The report indicates that the SEC’s own policies, requiring new hires to divest their crypto holdings, are hindering the recruitment of qualified candidates.
Ethics Rules and Candidate Pool
Many potential candidates for crypto expert positions at the SEC own digital assets, which would prevent them from working on crypto-related matters due to ethics rules. This requirement has proven to be a deterrent for applicants who are unwilling to sell their crypto assets in order to work for the SEC, thus limiting the candidate pool.
Competition and Legal Uncertainty
In addition to the policy on divesting crypto holdings, the SEC also faces competition with the private sector for skilled professionals, as private sector wages can be substantially higher. Furthermore, the lack of case law and legal certainty around crypto presents an ongoing challenge for the SEC in terms of regulation and enforcement.
Insights from SEC Spokesperson
While an SEC spokesperson downplayed the hiring issues and emphasized steady hiring rates and agency accomplishments, the Inspector General specifically identified recruiting skilled talent as a top management concern for the regulator. The agency’s involvement in over 130 crypto-related actions since 2018 further underscores the need for knowledgeable staff.
Hot Take: Implications of Hiring Challenges
The SEC’s policy on prospective employees owning crypto assets appears to be limiting the potential pool of experts. Without reconsidering this policy, the agency could face disadvantages in terms of crypto knowledge as more complex cases emerge, potentially impacting its ability to effectively regulate and enforce in the rapidly evolving crypto sector.
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