SEC Nearly Doubles Size Of Enforcement’s Crypto Assets And Cyber Unit – Fin Tech – United

The Securities and Exchange Commission (SEC) announced on May 3, 2022 the near doubling of
the unit responsible for protecting investors in crypto markets and
from cyber-related threats by allocating 20 additional positions to
that team. The rebranded Crypto Assets and Cyber Unit (formerly
known as the Cyber Unit) (CACU), which is part of the Division of
Enforcement, will now number 50 full-time professionals.

“The U.S. has the greatest capital markets because
investors have faith in them, and as more investors access the
crypto markets, it is increasingly important to dedicate more
resources to protecting them,” said SEC Chair Gary Gensler.
“The Division of Enforcement’s Crypto Assets and Cyber
Unit has successfully brought dozens of cases against those seeking
to take advantage of investors in crypto markets. By nearly
doubling the size of this key 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.”

Originally formed in 2017, CACU has brought more than 80
enforcement actions related to crypto asset offerings and
platforms, resulting in monetary relief totaling more than $2
billion. The expanded CACU is expected to focus on investigating
securities law violations related to:

• Crypto asset offerings;
• Crypto asset exchanges;
• Crypto asset lending and staking products;
• Decentralized finance (“DeFi”) platforms;
• Non-fungible tokens (“NFTs”); and
• Stablecoins.

Additionally, CACU has previously brought actions against SEC
registrants and public companies for failing to maintain adequate
cybersecurity controls and for failing to appropriately disclose
cyber-related risks and incidents. It is expected that activity in
this area will continue to expand.

Dinsmore attorneys are closely monitoring these
developments.

www.dinslaw.com

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