The U.S. Securities and Exchange Commission (SEC) said in a recent report that the agency is struggling to hire cryptocurrency experts because the candidates would be required to sell any crypto assets they hold. The report, titled The Inspector General’s Statement on the SEC’s Management and Performance Challenges, was published in October and modified on Nov. 2.

"Officials in several SEC divisions cited a small candidate pool of qualified experts and high competition from private sector recruitment as challenges in filling crypto asset-related positions. Officials also reported that many qualified candidates hold crypto assets, which the Office of the Ethics Counsel has determined would prohibit them from working on particular matters affecting or involving crypto assets. This prohibition, according to SEC officials, has been detrimental to recruiting, as candidates are often unwilling to divest their crypto assets to work for the SEC," the report stated.

The report described the challenges the SEC faces in recruiting and retaining qualified candidates, noting that the agency had a 9.3% vacancy rate as of Sept. 30. The vacancy rate has risen steadily over the last four years.  

The report said the SEC is facing specialized recruiting challenges, with its Division of Enforcement struggling to hire qualified candidates who are experts in cryptocurrency. That division, which is responsible for "investigating and prosecuting fraud and other violations of the securities laws," has a vacancy rate of 8.1%.  

CryptoSlate reported that the SEC has engaged in more than 130 enforcement actions related to crypto, the majority of which have taken place since 2018. Courts have not always ruled in the SEC's favor in the crypto realm, such as instances including a July victory for crypto company Ripple regarding sales of the token XRP and the August determination that Grayscale has the right for its proposed Bitcoin Trust to be reviewed by the SEC.