Dry evolves the application of crypto, widens the attention of cyber fraud

The American Securities and Exchange Commission restructures its application approach by reducing its cryptocurrency surveillance unit and replacing it with a smaller team focused on cyber-fraude and technological threats.

What happened: The newly trained division will investigate crimes involving improper use of blockchain, artificial intelligence, automatic learning and financial fraud focused on social media, Bloomberg reported.

The new law application of the law will have 30 specialists, led by Laura d'(An ancient co-chief of the cryptocurrency unit of the dry.

This marks a significant reduction, because the new team will operate with 20 less staff members than the unit dedicated to the application of cryptocurrencies, which was created in 2022.

According to the president of the acting dry Mark UyedaThe agency’s updated strategy aims to protect investors while allowing innovation to develop safely.

He noted that financial criminals often take advantage of new technologies to mislead investors, which makes it crucial for the dry to adapt its application priorities.

Read also: the study of bitcoin will strengthen us, says the governor of the Czech Central Bank

Why is it important: The decision of the SEC reflects a gap of the agressive application tactics of the former president Gary Genslerwhich continued approximately 100 application measures linked to the crypto during its mandate.

Gensler was a vocal critic of digital assets, often questioning their fundamental value and describing the sector as too dependent on the feeling of the market rather than financial fundamentals.

The approach of the dry in terms of surveillance of cryptocurrencies has moved over the years.

Shortly after Donald TrumpInauguration, the agency has trained a separate working group to create a clearer regulatory framework for digital assets.

Although this initiative aimed to provide a structure to the cryptographic industry, the last decision of the SEC suggests a broader emphasis on the financial crimes linked to the cyber rather than on the direct surveillance of digital currencies.

With this change in application priorities, financial markets and cryptocurrency companies will monitor how the evolution of regulatory monitoring and if the cryptographic approach on the scale of the SEC has an impact on future developments of industry.

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