The U.S. Securities and Exchange Commission (SEC) is hiring another 20 enforcement staff for the unit that protects investors from crypto scams and cyberthreats.
- Since 2017, the unit has brought more than 80 enforcement actions for fraudulent and unregistered offerings, with monetary relief totaling more than $2 billion.
- SEC Chairman Gary Gensler has previously hit exchanges like Coinbase (COIN) for not registering with regulators when they offer security-like tokens. In September, he said the new area of responsibility would require "a lot more people" at the agency.
- The SEC polices those offering securities for sale, as well as those who advise on or broker trades, to make sure they are open and honest with clients. It says its enforcement actions in conventional markets mean hundreds of millions of dollars are returned to wronged investors each year.
UPDATE (May 3, 10:07 UTC): Adds background, details starting in third bullet point.
CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk offers all employees above a certain salary threshold, including journalists, stock options in the Bullish group as part of their compensation.