SEC Hiring Spree to Combat Crypto Fraud
The SEC has announced a hiring spree for its newly renamed Crypto Assets and Cyber Unit. The new team will grow from 30 to 50 full-time employees. The selection of Gensler as the new head of the unit represents a significant departure from the administration of former President Donald Trump, who embraced a laissez-faire approach to regulation. Gensler also said he is committed to addressing the growing problem of cryptocurrency fraud and how to combat it.
20 new employees hired for newly renamed Crypto Assets and Cyber Unit
The Securities and Exchange Commission (SEC) has announced the hiring of 20 additional employees to its newly renamed Crypto Assets and Crypto Unit. The new employees will include fraud analysts, investigative staff attorneys, trial counsels, and supervisors. These employees will be responsible for identifying cybersecurity issues and policing the crypto markets.
The new Crypto Assets and Cyber Unit will focus on cyber-related securities fraud and the protection of investors. The new unit will also look into exchanges, lending platforms, and crypto asset offerings. The new employees will also conduct investigations and enforce federal securities laws. These employees may use artificial intelligence to help them monitor specific areas of fraud.
The newly created unit has been enforcing cryptocurrency securities since 2017. It has plans to expand its responsibilities to include crypto platforms and partnerships with the Commodity Futures Trading Commission. These new hires are a sign that the SEC is taking the security of crypto investors seriously.
Team will jump from 30 to 50 full-time employees
The SEC has increased the number of full-time employees for its Crypto Assets and Cyber Unit by adding more than 20 positions. These positions include investigators, fraud analysts, and trial counsels. The team is based in Washington, DC, with several regional offices.
The new positions will help the SEC better protect investors and the public from cryptocurrency fraud. This is great news for the American public, as retail investors are typically the victims of crypto-related securities fraud. Furthermore, cyber threats pose existential risks to the U.S. financial system, putting the new team in a unique position to protect investors and ensure fair markets. Gensler and Enforcement Director Gurbir Grewal applauded the new hires, calling them long overdue.
Gensler’s selection is a departure from former President Donald Trump’s take on regulation
Gensler’s selection is a significant departure from former President Donald Trump’s stance on the issue of cryptocurrency fraud and regulation. During a recent interview with CoinDesk’s Nikhilesh De, Gensler acknowledged the differences between traditional 10-Ks and ICOs. However, he said that the current state of technology makes such disclosures unnecessary.
Former SEC Chairman Jay Clayton has called for the accelerated adoption of cryptocurrencies, but his pick is a departure from Trump’s approach to both issues. The SEC has already stepped up its efforts to regulate cryptos, hiring twenty additional staff members.
The Securities and Exchange Commission will increase its cryptocurrency regulatory staff by nearly double. The new hires will join the SEC’s Crypto Assets and Cyber Division. They will be tasked with investigating cyber-related threats and ensuring appropriate cybersecurity controls. They will also be responsible for increasing transparency of cybersecurity breaches.
Among Gensler’s many qualifications, he’s widely seen as receptive to the emergence of new financial technologies. He taught at MIT about blockchain, which is a global ledger for digital currency transactions. He also has over twenty years of experience in financial services, including working for Goldman Sachs. He also served as a regulator at the Commodity Futures Trading Commission during the Obama administration. While he’s a departure from Trump’s approach to regulation and cryptocurrency fraud, Gensler has said that cryptocurrencies should fall under SEC’s jurisdiction.
Impact on other securities regulators
The use of cryptocurrencies has generated tremendous public interest, and the use of cryptocurrencies has become a major topic of discussion among government enforcement attorneys. Recent conferences and agency bulletins have addressed the issue. While cryptocurrency is a legitimate payment method, it is also used for various types of fraudulent activities. As such, the government must take steps to combat it. This includes identifying whistleblowers who may be able to provide valuable information that may help the government stop illegal activity.
The inherent nature of cryptocurrency assets makes it a convenient target for fraudulent activity, and multiple incidents of investors losing their capital have increased skepticism about the industry. As a result, there is a continuing debate on how the industry should be regulated. While the inherent “trust” nature of the technology should not undermine regulation, it should serve as a reason to protect investors.
The SEC has a range of jurisdiction over cryptocurrency. In addition to regulating investment funds, the commission also regulates investment advisors. Investment advisors must register with the SEC, and firms must follow specific regulations to protect investors.