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May 3, 2022 by Lipika Deka
The U.S. Securities and Exchange Commission, SEC is planning to allocate 20 additional positions that would be responsible for protecting investors in crypto markets and from cyber-related threats. The newly renamed Crypto Assets and Cyber Unit in the Division of Enforcement will grow to 50 dedicated positions, the press release said.
“The U.S. 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,” SEC Chair Gary Gensler said.
By nearly doubling the size of this key unit, it will be better equipped to police wrongdoing in the crypto markets while continuing to identify disclosure and controls issues with respect to cybersecurity, he added.
The cyber unit which was first created in 2017 claims to successfully crack 80 enforcement actions related to fraudulent and unregistered crypto-asset offerings and platforms, that resulted in monetary relief totaling more than $2 billion.
SEC on a hiring spree, adds 20 positions for its new Crypto Cyber Unit 3
Gurbir S. Grewal, Director of the firm’s Division of Enforcement said, “The bolstered Crypto Assets and Cyber Unit will be at the forefront of protecting investors and ensuring fair and orderly markets in the face of these critical challenges.
The expansion drive comes after Gensler in April said the agency was exploring how it could extend investor protections to users of exchanges and alternative trading platforms. Crypto trading platforms could also be covered, he said.
SEC named Crypto an Exam Priority for 2022
On March 30th, the Securities and Exchange Commission published a report listing crypto assets as an examination priority for market participants this year.
Gensler explained that the examination priorities identify key risk areas that the SEC expects registrants like investment advisers, broker-dealers, clearing firms, and self-regulatory organizations “to address, manage, and mitigate with vigilance.”
In the past few years, the top regulator has maintained an aggressive stance by keeping a hawk-eye over the digital assets industry with Chair Gary Gensler frequently commenting that he considers many of them to be securities and subject to his agency’s rules.
The financial watchdog has launched probes into marketplaces offering certain types of nonfungible tokens, or NFTs, and firms behind crypto-lending products.
