SEC Expands Crypto Assets and Cyber Unit
The Division of Enforcement’s new Crypto Assets and Cyber Unit (formerly known as the Cyber Unit) will focus on investigating violations of securities laws in the industry. It aims to increase to 50 dedicated posts in the coming days.
SEC Chairman Gary Gensler said the United States has the most important capital markets because “investors trust it.” He stressed the importance of devoting more resources to the “protection” of investors.
“By nearly doubling the size of this key unit, the SEC will be better equipped to police wrongdoing in crypto markets while continuing to identify cybersecurity disclosure and oversight issues.”
Since its inception in 2017, the unit has investigated over 80 cases involving fraudulent and unlicensed crypto-asset offerings and platforms, resulting in over $2 billion in monetary relief. The announcement reveals that the expansion of the Crypto Assets and Cyber Unit will leverage the agency’s experience to protect investors in the crypto markets. It will focus on securities law violations related to crypto offerings, crypto exchanges, crypto lending and staking products, DeFi platforms, NFTs, and stablecoins.
Regulatory Clarity for Crypto Markets
Last year, Gensler compared stablecoins to casino poker chips. Recently, he suggested that traditional SEC asset investor protections should also apply to investors in crypto markets. Using a “come talk to us” strategy, Gensler encouraged crypto companies holding securities to register to protect investors.
Several crypto companies have expressed their dissatisfaction with the lack of regulatory clarity in the region, which several institutions, including the SEC, influence.