The SEC Is Doubling Down On Cryptocurrency Regulation By Expanding

2022-05-04 | Selina Mathew

The SEC Is Doubling Down On Cryptocurrency Regulation By Expanding

The SEC's Enforcement Division's Crypto Assets and Cyber Unit, which is entrusted with overseeing cryptocurrency enterprises, will hire 20 more employees.

The Securities and Exchange Commission (SEC) of the United States stated that it would almost quadruple the number of people in charge of protecting investors in cryptocurrency marketplaces.

According To The Release, the SEC's Cyber Unit, which comprises the Crypto Assets and Cyber team, will employ 20 additional workers for 50 specialized roles.

The SEC's 20 recruits will include investigative staff attorneys, trial lawyers, and fraud analysts. Gary Gensler, the board's chairman, lauded the selections, saying they were long overdue and necessary for monitoring one of Wall Street's newest and most popular industries.

Many people have been worried about the possibility of market manipulation and other fraudulent activity in the crypto world, so this is good news. The SEC's crypto division has "successfully pursued dozens of actions against people aiming to take advantage of investors in crypto marketplaces" in recent months. According to Gensler of SEC:

“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.”

According to SEC head of enforcement Gurbir S. Grewal, individuals comprise the bulk of crypto-related securities fraud victims, according to SEC head of enforcement Gurbir S. Grewal. Cyber-attacks, according to Grewal, continue to pose an "existential" threat to the US financial system. "The strengthened Crypto Assets and Cyber Unit will be in the forefront of protecting investors and the larger markets," he added.

After almost eight months of appealing for extra employees, the news was made. According to reports, Gensler told legislators that his agency required a significant increase in employees to deal with the ever-increasing number of innovative financial technologies.

Last month, Gensler said that the SEC's safeguards for conventional asset investors should also extend to crypto traders. Gensler has pushed crypto businesses with securities to register to protect investors, using a "come in and speak to us" approach. Several cryptocurrency companies have decried the lack of regulatory clarity in the United States, influenced by numerous institutions such as the SEC, the Commodity Futures Trading Commission, and the Financial Crimes Enforcement Network.

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