The SEC has established a special working group to combat cross-border trading fraud targeting American investors

ChainCatcher news, according to an official announcement, the U.S. Securities and Exchange Commission (SEC) has established a cross-border special task force to combat cross-border trading fraud that harms U.S. investors.

The initial focus of the cross-border special task force will be to investigate potential violations of U.S. federal securities laws related to foreign companies, including potential market manipulation practices such as "stock price inflation" and "pump and dump." The task force will also focus on "gatekeepers," particularly auditors and underwriters who assist these companies in entering the U.S. capital markets. Additionally, the task force will review potential securities law violations related to companies in foreign jurisdictions. SEC Chairman Paul Atkins stated, "We welcome companies from around the world to enter the U.S. capital markets, but we will not tolerate any bad actors—whether they are companies, intermediaries, or 'gatekeepers'—attempting to exploit international borders to obstruct and evade U.S. investor protections. The new special task force will strengthen the SEC's investigative efforts and enable the SEC to use all available tools to combat transnational fraud."