SEC issues strategic plan with focuses on enforcement, workforce diversity

The Securities and Exchange Commission released its strategic plan for fiscal years 2022 to 2026 on Wednesday, laying out its goals to protect investors from fraud, sustain a strong and relevant regulatory framework, and support a diverse workforce.

"Our capital markets touch all Americans' lives, whether they're saving for the future, borrowing for a mortgage, taking out an auto loan, or working for a company that raises money from the public," SEC Chairman Gary Gensler said in a news release. "That's why it is critical that the SEC continue to evolve and modernize our rulesets as technology, business models, and our markets change. Our strategic plan will help guide these efforts and advance our work to protect American families, keep pace with ever-changing times, and invest in our talented staff."

The agency published a draft of its strategic plan in August, releasing the plan for public comment.

In its final version of the plan, the SEC lists three main goals: "protect the investing public against fraud, manipulation, and misconduct; develop and implement a robust regulatory framework that keeps pace with evolving markets, business models, and technologies; (and) support a skilled workforce that is diverse, equitable, and inclusive and is fully equipped to advance agency objectives."

To protect investors, the agency said it would pursue enforcement and examination initiatives aimed at addressing risks and misconduct. The SEC also plans to enhance the use of data and update the design, content and delivery of disclosures to help investors make informed decisions, according to the strategic plan.

The SEC said it intends to update existing rules, explore strategies to address risks and adjust its actions to keep up with new developments and trends. The strategic plan identifies "the rapid growth in crypto assets" as one of several "evolutionary risks," and said it would "pursue new authorities from Congress where needed, continue to effectively collaborate with other regulators, and engage more proactively on digitization initiatives."

In October, Mr. Gensler said at the Financial Markets Quality Conference that crypto legislation should focus on regulating stablecoins and granting more authority to the Commodity Futures Trading Commission. He also restated his belief that the majority of cryptocurrencies are securities, and therefore they should be regulated by the SEC.

In the SEC's strategic plan, the agency said it would focus on recruiting, training and retaining skilled workers while promoting diversity, equity and inclusion. The SEC also said it would encourage collaboration, enhance risk management and continue to modernize internal technology.

The plan was published in accordance with the GPRA Modernization Act of 2010, which calls for federal agencies to outline their missions, plans and goals every four years. The GPRA Modernization Act was an update to the Government Performance and Results Act of 1993.