- SEC creates a cross border task force to target pump-and-dump and foreign market fraud.
- The new unit will pursue auditors and underwriters that help fraudulent firms access U.S. markets.
- SEC and CFTC to host a joint roundtable on September 29 to discuss regulatory harmonization.
The Securities and Exchange Commission announced a cross border task force that will direct enforcement resources toward foreign-based fraud. Officials said the initiative will enhance the Division of Enforcement’s efforts to protect U.S. investors from schemes that originate outside the country.
Task Force to Pursue Market Manipulation and Gatekeepers
The SEC mentioned that investigators will prioritize cases involving pump-and-dump and ramp-and-dump schemes. These operations typically rely on misleading promotions to inflate asset prices before insiders sell at inflated levels. Officials noted that such schemes have harmed retail investors across both traditional markets and digital assets.
The task force will also pursue gatekeepers, including auditors and underwriters, who enable fraudulent companies to access U.S. capital markets. Regulators said enforcement will extend beyond issuers to include those whose actions support misconduct.
Officials confirmed that the task force will review companies in jurisdictions where government ownership or regulatory conditions raise investor risks. They noted that overseas structures sometimes frustrate enforcement, requiring coordinated oversight across divisions.
SEC and CFTC Plan Joint Roundtable
SEC Chairman Paul S. Atkins said the commission welcomes companies from around the world that seek access to U.S. capital markets. He emphasized that the SEC will not tolerate bad actors, whether companies, intermediaries, gatekeepers, or exploitative traders, that attempt to use international borders to frustrate and avoid U.S. investor protections.
Atkins said he directed divisions including Corporation Finance, Trading and Markets, and International Affairs to recommend additional actions. He added that the Commission may consider new disclosure requirements and rule changes to strengthen protections. Division of Enforcement Director Margaret A. Ryan said the task force will use existing expertise to pursue international market fraud.
She emphasized that the unit will coordinate across the agency to consolidate investigative resources. The SEC also confirmed a joint roundtable with the Commodity Futures Trading Commission on September 29. Both agencies said they will use the session to address regulatory harmonization and improve cross-agency cooperation.
