SEC To Increase Anti-Crypto Scam Efforts By Adding More Staff

The Securities and Exchange Commission is expanding its department that protects investors against crypto frauds and cyber dangers by adding additional 20 enforcement officers.

The number of employees dedicated to investigating securities law violations in industries such as coin offerings, lending, non-fungible tokens (NFTs), and decentralized finance has increased to 50. 

Since 2017, the unit has filed over 80 enforcement proceedings for fraudulent and unregistered offerings, resulting in more than $2 billion in monetary relief.

Gary Gensler has repeatedly chastised exchanges like Coinbase (COIN) for failing to register with regulators when offering security-like tokens. In September, he stated that the additional area of responsibility would entail the agency hiring “a lot more people.”

The recent proposals suggest that enforcement action against decentralized finance could be expanded, posing significant regulatory risks for crypto initiatives in the country. The agency is looking into whether or not NFTs should be under its jurisdiction.

The Securities and Exchange Commission regulates individuals who sell securities, as well as those who advise on or broker trades, to ensure that they are transparent and honest with their clients. It claims that its traditional market enforcement operations result in hundreds of millions of dollars being recovered to harmed investors each year.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Patrick

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