The SEC (U.S. Securities and Exchange Commission) announced earlier this week that it is adding 20 new positions to its Crypto Assets Unit which is in the Cyber Unit of the Commission. The new unit previously handled cybercrimes but is now equipping itself to address several new areas in the digital currency realm such as Crypto and NFT exchanges, the lending of digital assets, and more.
Protecting the Crypto Market
Investors all around the world usually believe in the United States crypto market. The SEC believes that the more investors that pour into the market, the more important it is to allocate the necessary resources to protect those investors. SEC Chair Gary Gensler stated in an announcement. “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 control issues concerning cybersecurity.”
Target Areas For SEC
A big part of this announcement was addressing the main areas in which the SEC plans to target. Their two biggest concerns are crypto exchanges and crypto-assets. The SEC also claimed jurisdiction over NFTs and plans to address the process of staking, which means providing interest for unused crypto assets on websites for lending or trading liquidities.
SEC Wants to Be In Charge of Enforcement of Regulations
It is a certainty that the SEC wants to be an agency that leads the way in regulating crypto throughout the United States. Since the Cyber Unit was created roughly five years ago, they have filed over 80 enforcement policies related to unregistered and fraudulent crypto asset companies and social platforms. In a release made by the agency, they said that their efforts have managed to cause over $2 billion in monetary relief for victims. The Cyber Unit has also cracked down on companies that incorrectly manage and disclose cyber security risks to their customers.
Wrap Up
As more nuances are introduced into the crypto industry, a lot of consumers of digital assets can find themselves at a greater risk of scams from fraudulent companies and sellers of crypto. This is why the SEC plans to add even more people to their Cyber Unit so that the U.S. digital asset market will have the most strict oversight we have ever seen before. If you buy and sell digital assets and are unsure how to protect them, call an expert or advisor for further guidance.
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