US financial regulator expands crypto team amid crackdown
The US financial regulator is increasing oversight of digital assets by adding 20 officials to a team dedicated to policing crypto markets.
The Securities and Exchange Commission (SEC) today revealed that its Crypto Assets and Cyber Unit will grow to 50 positions, almost doubling in size as the division brings digital assets within its remit. The unit will focus on crypto asset offerings, exchanges, decentralized finance and NFTs according to the regulator.
“The US has the greatest capital markets because investors have faith in them, and as more investors access the crypto markets, it is increasingly important to dedicate more resources to protecting them,” said SEC Chair Gary Gensler.
“By nearly doubling the size of this key unit, the SEC will be better equipped to police wrongdoing in the crypto markets while continuing to identify disclosure and controls issues with respect to cybersecurity,” Gensler added.
SEC chief Gary Gensler has issued multiple warnings about the risks associated with crypto assets and has led the charge to bring the industry under regulatory oversight. Last month Gensler stated that the majority of crypto tokens classify as securities and fall under the SEC’s jurisdiction.
The SEC’s crypto and cyber unit has brought more than 80 enforcement actions against fraudulent and unregistered crypto asset offerings and platforms since its inception in 2017. The addition of 20 officers to the Crypto Assets and Cyber Unit will bolster the ranks of its supervisors, investigative staff attorneys, trial counsels, and fraud analysts in the agency’s headquarters in Washington, DC, as well as several regional offices.
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