SEC Targets Crypto Fraud with Cross-Border Task Force
•Regulations
SEC Intensifies Crypto Fraud Enforcement
The U.S. Securities and Exchange Commission (SEC) has established a Cross-Border Task Force to aggressively pursue fraud involving foreign-based companies operating in the U.S. markets.
Key Focus Areas:
- Pump-and-Dump Schemes: The task force will target manipulative schemes designed to artificially inflate asset prices.
- Auditor and Underwriter Scrutiny: Investigations will extend to auditors and underwriters that enable foreign companies to access U.S. capital markets.
- Potential New Disclosure Rules: The SEC is reviewing the need for enhanced disclosure requirements to increase transparency and deter fraud.
SEC's Stance: No Tolerance for Evasion
Chairman Paul Atkins stated the SEC’s firm commitment to preventing individuals from exploiting international borders to bypass regulatory oversight. Enforcement Director Margaret Ryan emphasized the collaborative approach, pooling resources to combat cross-border manipulation effectively.