FOR IMMEDIATE RELEASE
Friday, May 28, 2021
Contact: Pamela Russell at 202-618-6433 or prussell@bettermarkets.com
WASHINGTON, D.C.—Dennis Kelleher, Co-founder, President and Chief Executive Officer of Better Markets, applauded President Biden’s budget request increases for the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), but noted that they are still insufficient:
America’s families, workers, businesses, banks, and investors—as well as the financial system and economy—depend on fair, efficient, robust, transparent, regulated and policed capital, derivatives and commodities markets. Two relatively small financial regulatory agencies, the SEC and the CFTC, are mandated to do all that but have been chronically underfunded for years. As a result, regulators are burdened with outdated 20th Century technology and capability while the financial industry moves at 21st Century nanosecond speeds. It’s not a fair fight.
When the regulators are behind, as they are now with crypto, fintech, blockchain, and high-frequency trading, as well as with the explosive growth in the size and complexity of vast interconnected markets, then systemic risks, reckless and illegal behavior, and market abuses increase. In addition to interfering with capital formation, allocation, and pricing, that unregulated and unpoliced conduct threatens Americans’ jobs, homes, savings, and economic security.
We applaud President Biden’s 2022 budget request increases of 5% for the SEC and nearly 30% for the CFTC, but that will still leave the agencies significantly underfunded and, therefore, unable to fulfill their critical missions. There is no question that the President and the country face many urgent needs, but we would urge even more resources be allocated to the critical front-line financial regulators we all depend on to keep our financial system and economy functioning properly.
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Better Markets is a non-profit, non-partisan, and independent organization founded in the wake of the 2008 financial crisis to promote the public interest in the financial markets, support the financial reform of Wall Street and make our financial system work for all Americans again. Better Markets works with allies – including many in finance – to promote pro-market, pro-business and pro-growth policies that help build a stronger, safer financial system that protects and promotes Americans’ jobs, savings, retirements and more. To learn more, visit www.bettermarkets.com.
