SEC to Add Staff as It Ramps Up Anti-Crypto Scam Efforts

The U.S. securities regulator plans to hire another 20 people to police coin offerings, non-fungible tokens and decentralized finance.

May 3, 2022 at 9:30 a.m. UTC
Updated May 3, 2022 at 8:50 p.m. UTC

Jack Schickler is a CoinDesk reporter focused on crypto regulations, based in Brussels, Belgium. He doesn’t own any crypto.

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.

  • With the additions, the number of staff dedicated to probing securities law violations in fields like coin offerings, lending, non-fungible tokens (NFTs) and decentralized finance (DeFi) is 50.
  • 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.
  • Recent SEC proposals have indicated it could extend enforcement action to DeFi, which poses new regulatory risks. There are also reports that the agency is looking into whether NFTs should fall under its responsibility.
  • 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.

The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

CoinDesk - Unknown

Jack Schickler is a CoinDesk reporter focused on crypto regulations, based in Brussels, Belgium. He doesn’t own any crypto.

CoinDesk - Unknown

Jack Schickler is a CoinDesk reporter focused on crypto regulations, based in Brussels, Belgium. He doesn’t own any crypto.

Trending

1
CoinDesk - Unknown
Crypto’s Credibility Problem – and How to Solve It

CoinDesk - Unknown
2
CoinDesk - Unknown
First Mover Americas: Bitcoin Heads for Record 8-Week Losing Streak

The latest moves in crypto markets in context for May 20, 2022.

The latest moves in crypto markets in context for May 20, 2022.

CoinDesk - Unknown
3
CoinDesk - Unknown
The Fall of Terra: A Timeline of the Meteoric Rise and Crash of UST and LUNA

A detailed timeline of Terra's journey from its underdog start as a payments app in South Korea to a $60 billion crypto ecosystem to one of the biggest failures in crypto.

A detailed timeline of Terra's journey from its underdog start as a payments app in South Korea to a $60 billion crypto ecosystem to one of the biggest failures in crypto.

CoinDesk - Unknown
4
CoinDesk - Unknown
The Future of Blockchain Technology: Building It Decentralized, Secure and Efficient

The core challenges facing the crypto community as they strive toward mass adoption.

The core challenges facing the crypto community as they strive toward mass adoption.

CoinDesk - Unknown