SEC Forms New Task Force to Fight International Fraud

The U.S. Securities and Exchange Commission (SEC) has created a new cross-border task force to combat transnational fraud, particularly focusing on pump-and-dump schemes that target U.S. investors from abroad.

According to an SEC press release, this new initiative will investigate violations of U.S. securities laws by foreign-based companies and individuals. The task force will also scrutinize “gatekeepers” like auditors and underwriters who might facilitate a fraudulent company’s access to U.S. capital markets. SEC Chairman Paul Atkins stated that while the U.S. welcomes global firms, the SEC will not tolerate “bad actors” who use international borders to evade investor protections.

The agency is also considering additional measures, such as new disclosure guidelines and rule changes, to enhance investor safeguards. Several key SEC divisions, including Corporation Finance, Economic and Risk Analysis, and Trading and Markets, have been assigned to support this new initiative.

The task force aims to consolidate enforcement efforts and enhance global cooperation to more effectively investigate and counter foreign entities that use international borders to evade U.S. regulations.

A central focus of this initiative is on digital assets and offshore crypto-linked listings, which the SEC notes are frequently exploited for deceptive practices. The agency has stated that its enforcement measures will apply equally to both cryptocurrencies and traditional securities.

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Crypto Fraud, Crypto Regulation, US Securities and Exchange Commission (SEC)