The Securities and Exchange Commission (SEC) faces growing regulatory and oversight challenges. Technological advances have increased the complexity of securities markets and the range of products offered to the public. More people than ever are invested in securities, either directly or through mutual funds. Technology has also fundamentally changed the way these markets operate and how investors interact with them. SEC routinely prioritizes and allocates resources, but the agency is under increasing pressure because of the staffing imbalances caused by its growing workload. Staffing shortages have delayed critical regulatory activities, such as reviewing rule findings and issuing guidance. Oversight and supervisory functions have also been affected. SEC has tried to address its high turnover by offering special pay rates and retention bonuses, but the lack of funding for pay parity means little relief in the short-term. SEC has generally managed the gap between staff and workload by determining which basic duties mandated by statute could be accomplished with existing resources. This approach has forced SEC to be largely reactive rather than proactive.