You can be on Entrepreneur’s cover!

SEC Nearly Doubles Size of Crypto Unit to Protect Investors in the $1.7 Trillion Cryptocurrency Market The Securities and Exchange Commission is adding 20 new positions to the team responsible for protecting crypto investors.

By Madeline Garfinkle

entrepreneur daily

Opinions expressed by Entrepreneur contributors are their own.

The Securities and Exchange Commission announced on Tuesday that it will be expanding the Crypto Assets and Cyber Unit by nearly double, aiming to bolster protection of cryptocurrency investors from cyber-related threats. The 20 new positions added to the unit will increase roll call to 50, and comes as a direct initiative to fight the growing volume of new threats that come with modern digital currency.

Related: Secret Service Has Seized More Than $100 Million in Crypto Over the Past 7 Years

"Crypto markets have exploded in recent years, with retail investors bearing the brunt of abuses in this space. Meanwhile, cyber-related threats continue to pose existential risks to our financial markets and participants," says SEC director of the Division of Enforcement, Gurbir S. Grewal, in the announcement.

Since its inception in 2017, the unit's actions have brought more than $2 billion in monetary relief from cases related to fraudulent and unregistered crypto asset offerings and platforms. As digital currency continues to gain momentum, the SEC's expanding team of dedicated officials strives to strengthen its hold on the new and ongoing risks to investors in the $1.7 trillion cryptocurrency market.

Related: 7 Ways to Protect Yourself in the World of NFTs

The dedicated new team — composed of investigative staff attorneys, trial lawyers and fraud analysts — will be at the forefront of cracking down on threats to crypto investors and ensure "fair and orderly markets in the face of these critical challenges," says Grewal.

The initiative has been in the works, and is in part long overdue, as SEC chair Gary Gensler stated back in September that the unit was grossly short staffed and needed "a lot more people" to pursue the increasing risks that emerge from thousands of new digital assets.

The larger staff will expand on the unit's expertise, with a focus on investigating security law violations relating to cypto asset offerings and exchanges, decentralized finance platforms, NFTs and stablecoins.

Related: Become an Expert Crypto Trader with These Courses

It remains unclear whether the 20 added positions will adequately fulfill the SEC's original plea for a larger staff, but Gensler is confident that by nearly doubling the 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," he remarked in the statement.

Madeline Garfinkle

News Writer

Madeline Garfinkle is a News Writer at Entrepreneur.com. She is a graduate from Syracuse University, and received an MFA from Columbia University. 

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Leadership

You Won't Have a Strong Leadership Presence Until You Master These 5 Attributes

If you are a poor leader internally, you will be a poor leader externally.

Business News

Samsung Makes 6 Day Workweeks Mandatory for Executives as the Company Enters 'Emergency Mode'

Samsung said its performance "fell short of expectations" last year. Now executives are required to work weekends.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Leadership

This Leadership Technique is the Secret to Optimal Team Performance

Through my experience in business, I've found one particular leadership technique that works better than others.

Business News

I Tried Airchat, the Hottest New Social Media App in Silicon Valley — Here's How It Works

Airchat is still invite-only and prioritizes voices with no option to upload photos or write text, making it feel more human than Facebook or Reddit.