BlockBeats News, September 7th. According to an official announcement, the U.S. Securities and Exchange Commission (SEC) has announced the establishment of a cross-border special task force to combat cross-border transaction fraud that harms U.S. investors. The initial focus of the cross-border special task force is to investigate potential violations of U.S. federal securities laws related to foreign companies, including potential market manipulation such as “pump and dump” schemes. The task force will also pay particular attention to “gatekeepers,” especially auditors and underwriters who help these companies access the U.S. capital markets. Additionally, the task force will review potential securities law violations related to foreign jurisdiction companies.
SEC Chairman Paul Atkins stated, “We welcome companies from around the world to access the U.S. capital markets, but we will not tolerate any bad actors – whether companies, intermediaries, or gatekeepers – attempting to exploit international borders to circumvent U.S. investor protections. The new special task force will strengthen the SEC’s investigative work and empower the SEC to use all available tools to combat cross-border fraud.”
