The Securities and Exchange Commission (SEC) has added 20 more members to its newly rebranded Crypto Assets and Cyber Unit. The team, which is part of the Division of Enforcement, now has 50 positions.
- The unit (formerly known as “Cyber Unit”) is dedicated to protecting investors from cyber threats and shady crypto market investments.
- With the recent expansion, the entity will focus on securities law violations related to crypto asset offerings, exchanges, lending/staking products, defi, NFTs and focus on stablecoins.
- Previously, SEC Chairman Gary Gensler suggested that most crypto tokens currently available are securities — including stablecoins, which “may have characteristics of investment contracts.”
- The Chairman felt it was important that resources be expanded to protect investors from these products as more come to market.
- “By nearly doubling the size of this key entity, the SEC will be better equipped to monitor misconduct in the crypto markets while continuing to identify cybersecurity-related disclosure and control issues,” he stated.
- To date, the entity has reportedly initiated over 80 enforcement actions against unregistered and/or fraudulent crypto platforms and offerings. This has resulted in over $2 billion in financial relief.
- “Crypto markets have exploded in recent years, with retail investors bearing the brunt of abuses in this space,” said Gurbir S. Grewal, director of the SEC’s Enforcement Division.
- One of the most well-known crypto crackdowns by the SEC is its ongoing lawsuit against Ripple, which allegedly over an unregistered securities offering worth $1.3 billion XRP has performed.
Source: Crypto News Deutsch