SEC Moves Against Market Abuse With New Cross-Border Fraud Unit

TLDR:

• The SEC announced a new Cross-Border Task Force to investigate fraud tied to foreign-based companies harming U.S. investors.
• The task force will target pump-and-dump schemes and manipulation tied to overseas entities entering U.S. capital markets.
• Enforcement will also extend to auditors and underwriters acting as gatekeepers for foreign companies seeking U.S. listings.
• SEC Chairman Paul S. Atkins stressed that bad actors cannot use borders to evade protections for U.S. investors.

The Securities and Exchange Commission has launched a new unit focused on cracking down on cross-border financial fraud. Regulators say the effort will strengthen enforcement against foreign companies that exploit U.S. markets. Early targets will include pump-and-dump schemes and manipulation tactics tied to international players. 

The SEC made clear that gatekeepers like auditors and underwriters will also face scrutiny. For crypto traders and investors, the move signals tighter oversight on offshore risks.

SEC Task Force to Investigate Pump-and-Dump Schemes in Crypto and Stocks

The SEC said its Cross-Border Task Force will investigate federal securities law violations involving foreign-based companies. 

Initial focus includes market manipulation methods such as pump-and-dump and ramp-and-dump operations. These schemes, which often lure investors with false momentum, have also appeared in parts of the crypto space. 

The task force will track cases where international structures are used to shield actors from U.S. enforcement.

Chairman Paul S. Atkins said the SEC welcomes global companies seeking U.S. market access but warned against abuse. He stated that borders would not protect bad actors from accountability. 

His remarks reflected a wider strategy of consolidating investigative resources into a single task force. The announcement followed years of growing concern over foreign listings linked to misleading financial practices.

Crypto investors on social platforms have already taken notice of the move. MartyParty, a well-known figure in the crypto scene, tweeted support for the crackdown. 

He said the community had demanded stronger protections against bad actors. His post reflected growing investor frustration with fraudulent schemes draining market confidence.

Yes!!!! We are being heard!!!! @SECPaulSAtkins is listening to us. WE WILL NOT TOLERATE BAD ACTORS IN OUR ASSET CLASS!!!#SEC Announces Formation of Cross-Border Task Force to Combat Fraud

"The Securities and Exchange Commission today announced the formation of a task force… pic.twitter.com/bK84gEHzbF

— MartyParty (@martypartymusic) September 5, 2025

The SEC also directed other divisions to explore stronger disclosure rules for companies entering U.S. markets. Units including Corporation Finance and Trading and Markets were tasked with making recommendations. 

Officials said possible measures could extend investor protections against high-risk overseas issuers. This could bring sharper oversight for crypto-linked foreign listings.

Focus on Gatekeepers and Global Market Access Risks

The SEC announcement also emphasized new enforcement efforts against auditors and underwriters. These intermediaries often provide access to U.S. capital markets for foreign firms. 

The agency said failures at these gatekeeping levels can expose investors to serious risks. By targeting such links, the task force aims to cut off fraudulent companies before they reach U.S. investors.

Division of Enforcement Director Margaret A. Ryan said the task force will use the division’s full resources. She described the plan as a coordinated response to international manipulation and fraud. 

The focus will cover companies from jurisdictions like China, where government influence adds layers of risk. U.S. regulators have long raised concerns about limited transparency from such regions.

The agency noted that international borders often make enforcement harder, but the task force is designed to overcome those challenges. Consolidating investigations should help the SEC act faster against schemes targeting American investors. 

Regulators also said they will strengthen cooperation with other divisions and the Office of International Affairs. This coordination is expected to help spot risks earlier and pursue cases more aggressively.

For U.S. crypto investors, the news carries direct relevance. Many pump-and-dump activities trace back to tokens and companies with offshore links. By closing enforcement gaps, the SEC aims to protect domestic traders from schemes operating beyond U.S. borders. 

The move reflects growing recognition that fraud in digital assets often starts outside American jurisdiction