SEC Allots 20 New Positions to Expand Its Crypto Assets and Cyber Unit

Key Insights:

• The US Securities and Exchange Commission will add 20 new positions to the Cyber Unit.
• The SEC is doubling down on its war against crypto.
• SEC’s decision comes just as judge Torres moved the SEC v Ripple calendar up.

The United States Securities and Exchange Commission (SEC) has developed a reputation in the crypto industry for being hostile in many ways. And now, the regulatory body is seemingly taking it up a notch with its newest announcement.

SEC adds backup

In a press release on May 3, the SEC announced that it would be allocating 20 additional positions to the newly renamed Crypto Assets and Cyber Unit (formerly known as the Cyber Unit).

This unit is responsible for protecting the investors of the crypto market, as well as keeping them safe from cybercrimes.

In the five years of its existence, the Cyber Unit has managed to take enforcement action against 80 fraudulent and unregistered crypto-asset offerings and platforms, which resulted in monetary relief worth more than $2 billion.

With the additional positions, the unit will grow to 50 dedicated positions and increase its focus on securities law violations such as:

• Crypto asset offerings.
• Crypto asset exchanges.
• Crypto asset lending and staking products.
• Decentralized finance (DeFi) platforms.
• Non-fungible tokens (NFTs).
• Stablecoins.

Commenting on this expansion, SEC Chair Gary Gensler stated:

“[…]as more investors access the crypto markets, it is increasingly important to dedicate more resources to protecting them. 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 controls issues with respect to cybersecurity.”

The SEC in the past

Cryptocurrencies and platforms are still a developing space given their novelty in comparison to securities that have existed for more than a century now.

As reported in February, lending protocol BlockFi was subjected to the largest ever penalty in the history of $100 million for violating the Investment Company Act of 1940.

Furthermore, the ongoing SEC v Ripple lawsuit is well known by everyone in the crypto space, and as per the most recent updates, Judge Torres is looking to bring the trial to an end by November by moving the calendar up from December.

Regardless of who wins the lawsuit, it is certain that SEC is not going to slow down its pursuit against crypto.