The United States Government Accountability Office (GAO) provided three key recommendations to the Securities and Exchange Commission (SEC) in preparation for the approval of spot Bitcoin exchange-traded funds (ETFs).
The GAO’s recommendations, made public on January 16, centered on workforce management within the digital asset market and the SEC’s approach to this emerging industry.
New Workforce Planning Strategy: The GAO advised the SEC to develop a new workforce plan, updating its strategy for fiscal years 2019–2022. This update is crucial for the SEC to effectively meet future workforce needs and manage its oversight and policymaking responsibilities in the crypto asset sector.
Documenting Policies and Procedures for FinHub: The GAO found that while the SEC’s Strategic Hub for Innovation and Financial Technology (FinHub) coordinates oversight of emerging technology, it lacks documented policies and procedures. Establishing these would support FinHub’s internal controls.
Developing Performance Goals for FinHub: The GAO recommended that the SEC ensure FinHub develops clear performance goals and measures that are objective, measurable, and targeted.
The GAO, an independent, nonpartisan audit institution within the U.S. legislative branch, evaluated the SEC’s preparedness for handling the growing crypto market. It identified that the SEC currently has 116 employees primarily working on crypto-related matters but lacks an updated workforce strategy.
On January 10, the SEC approved 11 spot Bitcoin ETF applications, a significant move after nearly a decade of rejections. The decision, which saw three votes in favor and two against, was finalized by SEC chief Gary Gensler’s deciding vote.
Peter Schiff, a known Bitcoin critic, suggested that the SEC chief was pressured into approving the spot Bitcoin ETFs. He also speculated that Gensler might introduce new stringent crypto regulations, potentially increasing Bitcoin transaction costs and impacting its price.
The GAO’s recommendations to the SEC highlight the importance of strategic planning, clear policies, and performance goals in managing the burgeoning digital asset market. These suggestions aim to enhance the SEC’s capability to oversee and regulate the crypto sector effectively, particularly in light of the recent approval of spot Bitcoin ETFs.
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