TechFlow news — Prior to approving the spot Bitcoin exchange-traded fund (ETF) on January 10, the U.S. Government Accountability Office (GAO) recommended three key action plans to the U.S. Securities and Exchange Commission (SEC). These recommendations focus on workforce management in digital asset markets and how regulators will address the emerging industry in the coming years.
The GAO's recommendations were submitted to the SEC on December 15 and made public on January 16. The GAO report advised the SEC to establish a new workforce plan, documented policies and procedures for internal controls, and performance goals and metrics specifically for the SEC’s Strategic Center for Innovation and Financial Technology (FinHub).
In evaluating the SEC and its capacity to respond to the growing cryptocurrency market, the GAO found that the SEC currently has 116 staff members primarily responsible for matters related to crypto assets. However, the SEC has not yet developed a new workforce planning strategy to update its 2019–2022 fiscal year strategic plan.
The GAO also found that while the SEC’s FinHub helps coordinate oversight of emerging technologies across the agency, it lacks documented policies, procedures, or performance objectives. Although FinHub has established operational processes—such as meetings with market participants—it has not formalized policies and procedures to support internal controls.
The GAO is an independent, nonpartisan audit organization within the legislative branch of the U.S. federal government, providing auditing, evaluation, and investigative services to the U.S. Congress.
