Highlights
- The SEC’s new Cyber and Emerging Technologies Unit (CETU) is newly built to target cyber fraud in the cryptocurrency market.
- Mainly, the unit is to prevent unregistered offerings and pump-and-dump schemes.
- Recent scams, like the LIBRA memecoin collapse, have intensified calls for tighter regulations in the crypto space.
The Securities and Exchange Commission (SEC) recently announced that it is overhauling its enforcement strategy by introducing a new unit.
Its primary mission will be to address cyber fraud and misconduct associated with blockchain technology, cryptocurrencies, and the misuse of emerging technologies. This move now signals a more favorable stance toward digital assets.
The newly formed Cyber and Emerging Technologies Unit (CETU) replaced the Crypto Assets and Cyber Unit. The SEC announced that this new unit will consist of a smaller team with a broader mandate.
It will focus on issues arising from social media platforms, artificial intelligence, machine learning, and blockchain technologies. Laura D’Allaird, who previously served as co-chief of the crypto unit, will lead this new group.
This unit will have approximately 30 fraud specialists and attorneys from multiple SEC offices. Also, the CETU will operate with 20 fewer staff members compared to the team established in 2022, which was dedicated to investigating fraud in the cryptocurrency markets and financial cybercrime.
keep reading to know more.
To Fight Crypto Market Fraud US SEC Launches New Enforcement Unit
Under the leadership of Laura D’Allaird, the unit is committed to vigorously conducting legal proceedings against wrongdoings in the digital asset space.
The SEC’s goal is to prevent bad actors from taking advantage of investors through innovative technologies.
With this new unit, the SEC aims to elevate market efficiency, ultimately fostering positive investor sentiment toward digital asset markets, which recent scams have spooked.
Similarly, the CETU will actively target fraudulent crypto schemes, which have been on the rise. The unit will investigate unregistered offerings and fraudulent token sales that harm investors. Also, it will look into cases of insider trading related to digital asset trading.
Likewise, one of the most important highlights of this Crypto news is the CETU’s key mandate, which is to identify and eliminate illicit pump-and-dump schemes, as well.
Moreover, CETU will collaborate with other government regulatory bodies to strengthen their joint enforcement efforts. This decision to replace the previous unit reflects the SEC’s evolving approach to digital assets.
Several Rug Pulls Went by Recently, Which Sparks Calls for Regulation
This Crypto news is the answer to the people’s calls for regulation in US. Investor confidence before has been severely impacted by a surge in fraud and rug pulls within the cryptocurrency space.
The memecoin market was filled with celebrity-backed tokens, out of which many have turned out to be scams. Unsurprisingly, the launch of Official Trump (TRUMP) and Melania Meme (MELANIA) ignited a wave of speculative trading; these coins have rapidly lost value, too.
A particularly striking example is the Central African Republic’s meme coin, CAR, which plummeted 97% just a week after its debut on the Solana blockchain.
In other recent rug pull-based crypto news, the LIBRA memecoin scandal was highlighted extensively. These scams have led to increased calls for greater regulation more than ever now across the crypto market.
The LIBRA scam was endorsed by Argentina’s President Javier Milei, where the LIBRA token initially saw rapid growth before its swift collapse.
With millions of money lost by investors and traders, even the richest can’t compensate entirely. Now, on these incidents, Regulatory experts have boldly begun to criticize authorities for failing to establish clear guidelines for managing digital assets.
Recently, Nic Puckrin, CEO of Coin Bureau, highlighted regulatory delays as a key factor contributing to investor financial losses.
He argued that the implementation of specific regulations could have prevented such deceptive schemes from taking root.
At last, with the SEC’s latest Crypto news by making CETU, many experts now will trust the market once again.
Disclaimer
In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
