The United States Securities and Exchange Commission (SEC) allocated 20 additional positions to the division responsible for protecting investors in crypto markets and against cyber threats.
The Crypto Assets and Cyber Unit within the Enforcement Division will grow to 50 staff.
“The United States has the largest capital markets, because investors believe in them, and as access to crypto markets expands, it becomes increasingly important to devote more resources to protecting them,” said SEC Chair Gary Gensler.
According to the press release, the extended division will focus in particular on violations of securities laws related to:
- offering and trading of crypto assets;
- lending and staking products;
- DeFi platforms;
- non-fungible tokens;
- stablecoins.
The agency noted that since its creation in 2017 the unit has pursued more than 80 enforcement actions, resulting in more than $2 billion in monetary restitution.
Originally formed as the Cyber Unit, the division has repeatedly taken enforcement action against public companies for failing to maintain adequate cybersecurity controls. Some firms did not adequately disclose incidents in this area and the related risks.
“Cryptomarkets have exploded in recent years, and the main burden of abuses in this space falls on retail investors. Meanwhile, cyber threats continue to pose existential risks to our financial markets and their participants,” noted Gurbir Grewal, Director of Enforcement.
In January, the SEC named bitcoin exchanges as one of the priority areas in tightening regulation of the crypto industry.