The Biden administration’s budget increases for the SEC and CFTC are a win-win for the American people, but more is needed

WASHINGTON, DCDennis Kelleher, co-founder, president and chief executive officer of Better Markets, welcomed President Biden’s request to increase the budgets for the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), but noted that they are still insufficient be:

“America’s families, workers, businesses, banks, and investors — as well as the financial system and economy — depend on fair, efficient, robust, transparent, regulated, And monitored capital, derivatives and commodity markets. Two relatively small financial regulators, the SEC and the CFTC, have been charged with all of this but have been chronically underfunded for years. As a result, market cops on the front lines of the financial industry are burdened with insufficient technology and manpower to effectively monitor the expanding and growing financial markets and industries.

“When regulators lag behind, as now so clearly exemplified by crypto, fintech, blockchain and high-frequency trading, and the explosive growth in the size and complexity of vast interconnected markets, then systemic risk, reckless and illegal behavior, and market abuse increase. This poorly regulated and poorly supervised behavior not only impairs the formation, allocation, and pricing of capital, but also threatens Americans’ jobs, homes, savings, and economic security.

“For those expressing concern at the millions who have fallen victim to crypto rip-offs and other lawlessness in our capital, derivatives and commodities markets, now is the time to stop talking and start acting: Support for President Biden’s 2024 budget request will be increased and, in fact, make even more resources available to these agencies ahead of the next fiscal year. This will cost America’s taxpayers nothing since the SEC’s budget is funded by industry fees and both agencies collect more money from wrongdoers that is paid to the Treasury Department well in excess of their budgets. Supporting additional resources is a win-win for the American people.”

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Better Markets is a nonprofit, nonpartisan, and independent organization formed in the wake of the 2008 financial crisis to advance public interest in financial markets, support Wall Street financial reform, and make our financial system workable for all Americans to do again. Better Markets works with allies – including many in the financial community – to promote pro-market, pro-business, and pro-growth policies that help build a stronger, more secure financial system that protects and nurtures Americans’ jobs, savings, retirements and more. To learn more, visit www.bettermarkets.org.