SEC to expand crypto, cyber enforcement unit with new appointments

The Securities and Exchange Commission has allocated 20 new positions to the unit focused on protecting investors in crypto markets and from cyber-related threats.

The newly renamed Crypto Assets and Cyber Unit will now officially grow to 50 full-time positions.

According to the SEC, the expanded Crypto Assets and Cyber Unit will leverage the agency’s expertise to ensure investors are protected in the crypto markets. The unit will have a focus on investigating securities law violations related to crypto asset offerings, crypto asset exchanges, crypto asset lending and staking products, DeFi platforms, NFTs and Stablecoins.

The new positions will bolster the Commission’s ranks of its supervisors, investigate staff attorneys, trial counsels and fraud analysts.

SEC chair Gary Gensler 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. The Division of Enforcement’s Crypto Assets and Cyber Unit has successfully brought dozens of cases against those seeking to take advantage of investors in crypto markets. 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.”

SEC’s Division of Enforcement Director Gurbir Grewal added, “Crypto markets have exploded in recent years, with retail investors bearing the brunt of abuses in this space. Meanwhile, cyber-related threats continue to pose existential risks to our financial markets and participants. 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.”

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