SEC Chairwoman Mary Schapiro joined FOX Business on Tuesday to weigh in on proposed regulation of U.S. financial markets.

Money market reform and short selling are two areas that need reform as the U.S emerges the worst financial crisis since the Great Depression, Schapiro said.

Additionally, there were issues that emerged after Bernard Madoff was arrested last year for fraud that made it “clear that the agency needed to fill some gaps,” Schapiro said. Specifically, staffing: the agency needs to recruit senior managers and top talent, according to Schapiro.

Shapiro said another course of action was “how to change our attention back to the investor in a more focused and direct way.”

Investigations at the SEC are up, Schapiro said, stating that there were 50 more investigations this year compared to the same period a year ago. The SEC has also doubled the number of temporary restraining orders or disciplinary actions it has brought.

“To truly measure investor confidence, I think will take a long time. That the markets are up is a good thing, but I’m not sure that it’s a measure of true investor confidence,” she said.

And that’s the SEC’s role, according to Schapiro, upholding investor confidence.

“If (investors) don’t think the markets are fair, then they won’t invest and we won’t be anywhere. And regulation is about ensuring that people have that confidence,” she said.

Shapiro said it’s important that non-bank institutions are also regulated. “I think Congress is actually doing a very good job of moving this agenda forward and trying to get some bills on the president’s desk to sign maybe by the end of the year,” said Schapiro.