SEC and CFTC Chairs Request Substantial Budget Increases

SEC Chair Gary Gensler and CFTC Chair Rostin Behnam advocated for annual budget increases to bolster their efforts on cybersecurity, IT modernization and market oversight. 

In testimony before the House Appropriations Subcommittee on Financial Services, SEC Chair Gensler requested a 2025 budget of $2.594 billion. Mr. Gensler said an additional $457 million is needed to support SEC efforts on cybersecurity, migration to the cloud, modernization of key systems, implementation of the Financial Data Transparency Act and other critical IT needs. Mr. Gensler noted that this budget request assumes the "full use of an additional $50 million from the SEC Reserve Fund for multi-year IT projects and programs." Mr. Gensler argued that this amount of spending is "dwarfed by what some of the biggest market participants spend in a month on technology."

In testimony before the Senate Subcommittee on Financial Services and General Government, CFTC Chair Rostin Behnam proposed a budget of $399 million for fiscal year 2025, reflecting a 9% increase above the 2023 and 2024 enacted budget. Mr. Behnam said that the proposal "reflects the minimum resources needed for the CFTC to perform its role as the primary regulator of the U.S. futures, swaps, and options markets, and to properly enforce the law to protect markets and market participants." He highlighted CFTC priorities for the coming year in response to (i) emerging risks and cyber threats, (ii) current oversight and surveillance responsibilities and (iii) misconduct in the digital asset space. Additionally, Mr. Behnam argued that the CFTC is requesting funds to "continue leveraging cloud and other new technology" to enhance the drawing of informed conclusions from market data and to support effective enforcement actions. Mr. Behnam noted the "overwhelming success" of the CFTC's Whistleblower Program.