The Securities and Exchange Commission (SEC) announced Tuesday that it will add 20 posts to its cryptocurrency enforcement unit to combat fraudulent activity in the booming digital industry.
Hester Peirce, a member of the SEC, went to Twitter on Tuesday to express her disapproval of the SEC's decision to hire 20 new crypto enforcement officers.
She replied to the SEC official account's tweet, "The SEC is a regulatory authority with an enforcement division, not an enforcement agency. Why are we in the forefront of crypto enforcement?"
The SEC revealed plans to boost the staff of its newly titled Crypto Assets and Cyber Unit, which was originally known as the Cyber Unit, from 30 to 50 people yesterday.
The team, which is part of the Division of Enforcement, is in charge of protecting investors in the cryptocurrency industry and against cyber-related dangers, according to the agency.
Peirce, nicknamed the "Crypto Mom" by many in the industry for her crypto understanding, has long been a critic of Gensler's enforcement-heavy regulatory strategy.
Gensler has remained tight-lipped about how cryptocurrency firms can meet regulations, opting to regulate by enforcement measures instead.
Rep. Tom Emmer, co-chairman of the Congressional Blockchain Caucus, echoed Peirce's perspective, retweeting it with the "finger pointing down" emoji. Emmer has previously denounced the "excessive regulation" of cryptocurrency.
In response to a question on Twitter, Peirce also indicated she wasn't a part of the cross-government committee formed by the US government. In March, President Joe Biden signed an executive order on cryptocurrency.
"By nearly expanding the staff of this vital division, the SEC will be better able to police misconduct in the cryptocurrency market while continuing to discover disclosure and control problems in terms of cybersecurity," said SEC Chair Gary Gensler.
The new branch will focus on avoiding fraud involving crypto-asset offers, cryptocurrency asset exchanges, crypto-asset borrowing, and staking products, decentralized finance marketplaces, non-fungible tokens, and stable coins, according to the SEC.
Many crypto exchanges are located in foreign jurisdictions and run in a regulatory gray area with no centralized control structure. Trading can get around traditional financial gatekeepers like banking and exchanges.
After Gensler stated in April that the SEC was considering how it could broaden investor protections to consumers of exchanges and other trading platforms, the SEC has increased its supervision. He said that crypto trading sites might potentially be covered.
The SEC announced that fraud analysts, trial and investigation attorneys, and supervisors will be among the available jobs.
