SEC Replaces Crypto Enforcement Team with Smaller ‘Cyber’ Unit
The US Securities and Exchange Commission is replacing its enforcement unit devoted to misconduct in the cryptocurrency markets with a smaller team focused on combating all kinds of cyber-related fraud, including through social media platforms and blockchain technologies. This move reflects the regulator's more friendly approach to digital assets, marked by former Chair Gary Gensler's skeptical views on cryptocurrencies. The new team will have a broader mandate and allocate fewer staff members compared to its predecessor.
- The shift in focus from cryptocurrency-specific enforcement to a broader cyber-related unit raises questions about the SEC's ability to effectively regulate emerging technologies without hindering innovation.
- How will the reduced allocation of resources impact the agency's ability to detect and prevent cyber-enabled fraud, particularly in the highly volatile cryptocurrency markets?