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, the front-line market cops on the financial industry beat are burdened with insufficient technology and staff to effectively police the sprawling and growing financial markets and industry.
“When the regulators are behind, as they are now as starkly illustrated by crypto, fintech, blockchain, and high-frequency trading as well as 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 under-regulated and under-policed conduct threatens Americans’ jobs, homes, savings, and economic security.
“For those expressing concerns about the millions of victims from crypto rip-offs and other lawlessness in our capital, derivatives, and commodities markets, now is the time to stop talking and start doing: support for President Biden’s 2024 budget request increases and, in fact, surge even more resources to these agencies in advance of the next fiscal year. This will cost America’s taxpayers nothing because the SEC’s budget is covered by industry fees and both agencies recover more money from wrongdoers that gets paid to the Treasury far in excess of their budgets. Supporting additional resources is a win-win for the American people.”
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.org.