SEC Doubling Size Of Its “Crypto Assets and Cyber Unit”

The U.S Securities and Exchange (SEC) is beefing up its crypto investigation unit. According to a statement released yesterday, the expansion would see the team overwatching the crypto industry to 50 people.

The SEC specifically named decentralized finance projects, crypto exchanges, and NFTs as areas they want to expand their unit to expand into.

“Crypto markets have exploded in recent years, with retail investors bearing the brunt of abuses in this space,” said the SEC’s enforcement director Gurbir S. Grewal. “The bolstered Crypto Assets and Cyber Unit will be at the forefront of protecting investors and ensuring fair and orderly markets in the face of these critical challenges.”

The hiring spree will also bring a new name to the task force. Previously going by the “Cyber Unit,” it will now be named “Crypto Assets and Cyber Unit.” The team will remain a part of the larger Division of Enforcement, as investigators of securities law violations.

"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," said SEC Chair Gary Gensler.

It was formed in 2017 during the height of initial coin offerings (ICOs) in the crypto space. The now infamous money-raising tool saw people exchange more established coins like Ethereum for newly created coins, from the projects running the ICO.

This form of crowdfunding is barely used nowadays after the SEC crackdown on multiple companies who were found to have broken securities law by raising money through an ICO.

With ICOs being tools of the past for money grifters, the Commission is now turning its attention toward the new hot spots for fraud, DeFi and NFTs. Both sectors according to the SEC, may have multiple projects selling unregistered securities.

As more people feel the burn of hacks and fraud within the crypto space, the talk around it seems to continue. With the SEC making this move, it could sway people back if they begin to feel security that hasn't been there before.