SEC Says It’s Having Trouble Hiring Crypto Experts: Here’s Why

The US Securities and Exchange Commission (SEC) is struggling to hire and retain crypto experts due to internal hiring bans, according to a new report by the agency's inspector general.

The announcement comes at a time when the SEC is focused on buying into the blockchain industry, which Chairman Gary Gensler described as “largely non-compliant.”

Experts do not sell their cryptos.

The Inspector General's Statement on SEC Governance and Enforcement Challenges On Thursday, the SEC “experiences challenges in recruiting specialists in crypto assets for investigative and enforcement purposes.”

The SEC has launched more than 50 enforcement actions against crypto industry companies this year, including global crypto exchange giants like Coinbase and Binance.

The disputes often arise when companies list or issue so-called “crypto asset securities” without proper registration. This often leads to lawsuits that break the letter of the law as to whether a given crypto qualifies as an investment contract.

SEC officials cite a shortage of qualified professionals and intense competition from the private sector as reasons for the hiring problems. What's more, those who understand crypto best are often investors themselves—a no-brainer for future SEC employees.

“The Office of the Ethics Counselor has decided [holding crypto assets] It prohibits them from working on matters affecting or involving crypto assets, the report said. “This ban, according to SEC officials, is detrimental to recruiting as candidates are often unwilling to invest in crypto assets to work for the SEC.”

The report emphasizes crypto and artificial intelligence (SEC) as industries around them. He noted that there is no market regulator yet to regulate spot markets for non-security cryptos like Bitcoin (BTC).

Understanding Bitcoin versus ownership

A May 2022 global survey by Block & Wakefield Research found that more than half of non-Bitcoin owners haven't invested in crypto primarily because they don't understand it enough. Additionally, Bitcoin self-awareness was the biggest predictor of willingness to buy BTC at the time.

Bitcoin, the largest by market value, has appreciated more than 100% this year.

Some of the most vocal crypto-promoters in the US Congress, including Senators Cynthia Lammis and Ted Cruz, are Bitcoin holders themselves. Presidential candidate Robert F. Kennedy owns Bitcoin.