"SEC Unites Against Global Fraud, Quantum Threats to Shield Investors"

The U.S. Securities and Exchange Commission (SEC) has announced the formation of a Cross-Border Task Force to strengthen and enhance the Division of Enforcement’s efforts to combat cross-border fraud affecting U.S. investors. This initiative marks a significant step in the SEC’s broader strategy to address transnational securities violations, particularly those involving foreign-based companies. The task force will initially focus on investigating potential violations of U.S. federal securities laws, including market manipulation schemes such as “pump-and-dump” and “ramp-and-dump.” It will also scrutinize gatekeepers, such as auditors and underwriters, who facilitate access to U.S. capital markets for these firms [1].

The task force’s objectives extend to examining companies from jurisdictions with unique investor risks, such as China, where governmental control and opaque practices can obscure fraudulent activities [1]. SEC Chairman Paul S. Atkins emphasized the agency’s commitment to protecting U.S. investors, stating that the task force will consolidate investigative efforts and use all available tools to combat cross-border fraud. He further directed other SEC divisions, including Corporation Finance, Examinations, and Trading and Markets, to recommend additional measures such as new disclosure guidelines and potential rule changes [1]. This coordinated effort underscores the SEC’s intent to modernize its enforcement strategies and align them with evolving market complexities.

Division of Enforcement Director Margaret A. Ryan highlighted the importance of leveraging the division’s expertise to address international market manipulation and fraud. She affirmed the task force’s role in enforcing federal securities laws and safeguarding U.S. investors [1]. The formation of this task force reflects a broader shift in the SEC’s enforcement priorities, with increased attention being paid to global market dynamics and the interconnectivity of financial systems. By targeting fraudulent schemes that exploit international borders, the SEC aims to level the playing field for investors and restore confidence in capital markets.

In parallel, the SEC has also expanded its focus to crypto-related fraud and systemic risks. The Crypto Assets Task Force is currently reviewing a proposal titled the Post-Quantum Financial Infrastructure Framework (PQFIF), which outlines a roadmap to protect digital assets from future quantum computing threats [4]. The framework emphasizes the need for transitioning to quantum-resistant cryptographic standards, as quantum advancements could undermine the security of assets like Bitcoin and Ether. The proposal highlights the urgency of implementing safeguards to prevent “Harvest Now, Decrypt Later” attacks and mitigate the potential for catastrophic losses if quantum computing achieves a breakthrough before 2035 [4].

The SEC’s broader agenda includes modernizing crypto policies and easing compliance burdens for public companies. In early September 2025, the commission unveiled a rulemaking agenda that encompasses proposals for digital asset sales, potential amendments to enable crypto trading on national exchanges, and a “rationalization” of investor disclosures [5]. These initiatives align with a strategic pivot under SEC Chair Paul Atkins, who has emphasized a renewed focus on fostering innovation and market efficiency while maintaining robust investor protections. The agenda also includes plans to reduce regulatory compliance costs for public companies, reflecting a growing recognition of the need for a balanced regulatory environment [5].

The SEC’s evolving approach to crypto regulation is drawing comparisons to the EU’s Markets in Crypto-Assets Regulation (MiCAR), which imposes stringent, bank-like standards on crypto firms. While MiCAR requires firms to obtain licenses as electronic money institutions or banks, the SEC’s proposals prioritize flexibility and innovation-friendly frameworks. This distinction could influence the trajectory of the U.S. crypto ecosystem, particularly for startups and institutional investors seeking regulatory clarity without excessive operational burdens [6]. As the SEC continues to refine its approach, the outcomes of these initiatives will likely have lasting implications for the global crypto landscape and investor confidence.

Source:

[1] SEC Announces Formation Cross-Border Task Force to Combat Fraud (https://www.sec.gov/newsroom/press-releases/2025-113-sec-announces-formation-cross-border-task-force-combat-fraud)

[2] SEC Launches Task Force to Crack Down on Cross-Border Fraud (https://cryptobriefing.com/sec-cross-border-task-force/)

[3] SEC Crypto Task Force Written Input (https://www.sec.gov/about/crypto-task-force/crypto-task-force-written-input)

[4] SEC Reviews Quantum-Safe Roadmap for Digital Assets (https://cointelegraph.com/news/sec-crypto-task-force-quantum-proof-digital-assets)

[5] U.S. SEC Unveils Agenda to Revamp Crypto Policies (https://www.reuters.com/legal/government/us-sec-unveils-agenda-revamp-crypto-policies-ease-wall-street-rules-2025-09-04/)

[6] How Will SEC’s Crypto Regulations Change the Landscape? (https://www.onesafe.io/blog/sec-crypto-regulations-implications)