The United States federal government’s independent agency, the Securities and Exchange Commission (SEC), has recently announced that it intends to increase the personnel responsible for protecting investors in the crypto market.
The Cyber Division of the SEC, which includes digital assets and the Cyber team, said that it would hire 20 new people for 50 dedicated positions.
The 20 new recruits will include investigative staff attorneys, trial lawyers, and fraud analysts, according to the SEC. Gary Gensler, the board’s chairman, applauded the appointments, saying they were long overdue and necessary for overseeing one of Wall Street’s newest and most popular sectors.
Gensler aims enhanced security in the crypto sector
Many people have been concerned about the possibility of market manipulation and other fraudulent activity in the crypto world, so this is good news. Gensler stated:
“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 control issues with respect to cybersecurity.”
Individuals comprise the bulk of crypto-related securities fraud victims, according to SEC head of enforcement Gurbir S. Grewal. Cyber-attacks, according to Grewal, continue to pose an “existential” threat to the US financial system.
“The expanded Crypto Assets and Cyber Unit” will be at the forefront of protecting investors and the larger markets, he said.
Today is the last day to apply for the Division of Enforcement's Los Angeles Regional Office Supervisory Trial Attorney position.
— U.S. Securities and Exchange Commission (@SECGov) April 27, 2022
According to reports, Gensler, who continues to reject Bitcoin ETFs, told lawmakers that his agency required a significant increase in employees to deal with the ever-increasing number of innovative financial technologies.
Last month, Gensler stated that the SEC’s protections for traditional asset investors should apply to crypto traders as well. Gensler has pushed crypto businesses with securities to register in order to protect investors, using a “come in and talk to us” approach.
Several crypto companies have decried the lack of regulatory clarity in the United States, which is influenced by numerous institutions such as the SEC, the Commodity Futures Trading Commission, and the Financial Crimes Enforcement Network.