SEC Hires More Staff to Increase Vigilance Against Crypto Scams

SEC Hires More Staff to Increase Vigilance Against Crypto Scams

SEC Hires More Staff to Increase Vigilance Against Crypto Scams For DailyBitcoin Editor

The US securities regulator will hire another 20 people to monitor coin offerings, non-fungible tokens, and decentralized finance.


The US Securities and Exchange Commission (SEC) is hiring another 20 law enforcement employees for the unit that protects investors from crypto scams and cyber threats.

These new employees bring to 50 the number of staff dedicated to investigating violations of securities law in fields such as cryptocurrency offerings (ICOs), exchanges crypto, loan products and stake of cryptocurrencies, stablecoins, non-fungible tokens (NFTs) and decentralized finance (DeFi).

Since 2017, the unit has initiated more than 80 enforcement actions for fraudulent and unregistered offers, with monetary relief totaling more than $2 billion.

SEC Chairman Gary Gensler said: “The United States has the best capital markets because investors have faith in them, and as more investors access crypto markets, it is increasingly important to devote more resources to protecting them.”

He added: “The Division of Enforcement’s Cyber ​​and Crypto Assets Unit has successfully brought dozens of cases against those seeking to take advantage of investors in the crypto markets. By nearly doubling the size of this key unit, the SEC will be better equipped to police irregularities in the crypto market. markets while continuing to identify disclosure and control issues regarding cybersecurity.”

more tasks

The Crypto Assets and Cyber ​​Unit will continue to address pervasive cyber threats to the nation’s markets, the SEC says in a press release.

See also  Banco Santander UK warns of growing celebrity-backed crypto scams

“Crypto markets have exploded in recent years, with retail investors bearing the brunt of abuse in this space. Meanwhile, cyber-related threats continue to pose existential risks to our financial markets and participants.”said Gurbir S. Grewal, director of the SEC’s Division of Enforcement, adding: “The beefed-up crypto and cyber assets unit will be at the forefront of protecting investors and ensuring fair and orderly markets in the face of these critical challenges.”

The infusion of 20 additional positions in the Cryptocurrency and Cyber ​​Unit will bolster the ranks of its supervisors, investigative staff attorneys, trial attorneys and fraud analysts at the agency’s headquarters in Washington, DC, as well as in several regional offices.

regulation on the way

Gensler has previously criticized exchanges as coinbase for failing to register with regulators when offering security-like tokens. In September he said the new area of ​​responsibility would require “a lot more people” at the agency. Also, in January of this year he expressed that the exchanges needed more scrutiny and that the institution sought to regulate them this year.

Recent SEC proposals have indicated it could extend enforcement action to decentralized finance, offering new regulatory risks for crypto projects in the country, says Coindesk. There are also reports that the agency is investigating whether NFT They should be your responsibility.

See also  No iPhone 14 under a thousand euros: serious price increase

Crucially, the SEC monitors those who offer securities for sale, as well as those who advise or broker transactions, to make sure they are open and honest with customers. It says its enforcement actions in conventional markets mean hundreds of millions of dollars returned to injured investors each year.

Sources: SEC, coindesk, archive

version of DailyBitcoin

Picture of unsplash

WARNING: This is an informative article. DiarioBitcoin is a means of communication, it does not promote, endorse or recommend any investment in particular. It is worth noting that investments in crypto assets are not regulated in some countries. May not be suitable for retail investors as the full amount invested could be lost. Check the laws of your country before investing.

Leave a Comment

Your email address will not be published.