This morning, the Securities and Exchange Commission said it would create an additional 20 positions in the unit overseeing crypto markets and internet-based threats. It also announced that the unit would be renamed Crypto Assets and Cyber Unit, previously known as the Cyber Unit, to reflect its expanded crypto-based purview.

Why should we care?
This hiring move reflects SEC Chair Gary Gensler’s previous statements to the public, which suggested that the Commission needed to bolster its ranks to effectively reflect the growth of burgeoning yet volatile 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," Gensler said today. Since 2017, the unit has conducted more than 80 enforcement actions in the crypto space, leading to more than $2B in relief. The Unit will look into various blockchain-based assets, including DeFi platforms, NFTs, and stablecoins. The SEC may be particularly explicit in its enforcement of the stablecoin space, especially if the federal government wants to expand the market size of stablecoins as compared to more volatile digital assets. The Unit will now have a dedicated staff of 50 employees, which may also speed up the government’s response to new innovations in the crypto space, creating a clearer and more regulated sector.