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- The SEC launches a cross-border task force to crack down on offshore fraud and protect U.S. investors from global threats.
- Pump-and-dump scams in crypto markets will be the focus of a new task force, created to prevent manipulation harming retail traders.
- The joint roundtable on Sept 29 will bring the SEC and CFTC together to improve coordination and strengthen market oversight.
The SEC in the U.S. has established a cross-border, fraud-busting task force. The new body will target offshore companies that default on U.S. securities laws. SEC officials reassured that the task force would address pump-and-dump schemes, which still remain a growing threat to investors, according to a press release. The announcement mentions a more aggressive approach to manipulation of the global markets.
The SEC reported that the task force will pull together resources in the investigation. It will unite teams that have experience in cross-border cases. However, the agency will also apply its entire legal power to chase down companies and people. The objective is to secure and protect U.S. investors and to instill confidence in financial markets.
In a post on X, SEC Chairman Paul S. Atkins informed people about the initiative. He said the agency will utilize all its enforcement forces. The new task force is an indication of a broader effort to identify, investigate, and prosecute fraud across international borders.
Crackdown on Crypto Pump-and-Dump Scams
The task force is focused on pump-and-dump schemes. Such scams frequently happen in crypto markets with altcoins and meme tokens. Scammers inflate prices, mesmerize their buyers with hyperbole, and then sell out at higher prices. The victims are left with heavy losses, whereas organizers end up making money at the expense of the victims.
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The Commodity Futures Trading Commission (CFTC) has also been issuing warnings. It has cautioned investors not to be too quick to jump into quick price rises in lightly traded assets. While, retail traders are considered to be the most vulnerable group by both regulators. They argue that dealing with these risks needs to be done through concerted supervision.
SEC Expands Collaboration With CFTC on Regulation
However. SEC also plans to look into the role of the market gatekeepers. Auditors and underwriters who facilitate the entry of fraudulent companies into U.S. markets are involved in these efforts. Through a concentration on enablers, regulators have been finding ways to reduce areas within which manipulation prospers.
This was announced with the intention of convening a joint roundtable discussion between the SEC and CFTC. The meeting will be held on September 29. The agenda will include harmonization and collaboration between the two agencies on matters of regulation. According to leaders, more coordination will address the gaps in regulations.
Atkins and CFTC Acting Chairman Caroline D. Pham said they were on the same page in a joint statement. They emphasized greater clarity in markets and investor protection. They also referred to cooperation as a U.S. regulatory strength.
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