Main Points ：
- SEC announces formation of a Cross-Border Task Force to combat transnational fraud including pump-and-dump and ramp-and-dump schemes.
- The task force targets foreign-based issuers, especially from jurisdictions like China, and scrutinizes gatekeepers such as auditors and underwriters.
- It coordinates with multiple SEC divisions to explore new disclosure guidance and rule changes.
- In parallel, SEC and CFTC plan a joint roundtable on September 29 to harmonize regulation, including crypto, DeFi, 24-hour trading, and event-based contracts.
- New SEC crypto rulemaking agenda proposes clearer frameworks, exemptions, and integration of digital assets into regulated exchanges.
- The overall shift under new leadership seeks to balance investor protection with fostering innovation and regulatory clarity.
1. Establishing a Cross-Border Enforcement Arm
On September 5, 2025, the U.S. Securities and Exchange Commission (SEC) announced the formation of a Cross-Border Task Force aimed squarely at combating transnational financial frauds that adversely impact U.S. investors. This initiative signifies a decisive escalation in the SEC’s enforcement strategy, consolidating investigative efforts across divisions to target securities law violations by foreign-based entities. The primary focus includes market manipulation schemes such as “pump-and-dump” and “ramp-and-dump” operations.
In a statement reflecting this stance, SEC Chairman Paul S. Atkins stated, “We welcome companies from around the world seeking access to the U.S. capital markets. But we will not tolerate bad actors… that attempt to use international borders to frustrate and avoid U.S. investor protections”. The task force also zeroes in on “gatekeepers” — auditors, underwriters, and other intermediaries — that facilitate entry into U.S. capital markets, ensuring they cannot be used to mask illicit behavior.
Division of Enforcement Director Margaret A. Ryan emphasized the collaborative nature of this initiative, noting that the task force will draw upon the enforcement division’s full strength to shield investors from international fraud.
2. Multi-Divisional Coordination and Regulatory Reinforcement
Chairman Atkins has instructed several other SEC divisions — including Corporation Finance, Examinations, Economic and Risk Analysis, Trading and Markets, as well as the Office of International Affairs — to recommend additional actions, such as new disclosure guidance and potential rule changes to enhance investor protection. In practice, this means the task force will act not just as an enforcement body but as a catalyst for regulatory evolution.
Barnes & Thornburg’s analysis underscores that companies and intermediaries must heighten compliance vigilance, as gatekeepers now face increased liability. Market participants should proactively adapt to forthcoming SEC guidance concerning cross-border activities.
3. Regulatory Harmonization and Broader Crypto Frameworks
Complementing the task force, the SEC and the Commodity Futures Trading Commission (CFTC) issued a joint statement, announcing a roundtable scheduled for September 29 to discuss aligning their oversight efforts. The subjects include 24-hour trading markets, decentralized finance (DeFi), event-based contracts, cross-margining, perpetual derivative products, and possible “innovation exemptions” for new financial models.
This collaboration represents a broader shift toward regulatory coherence. By harmonizing approaches between agencies, the aim is to prevent regulatory arbitrage and unwarranted migration of innovation overseas.
In tandem, the SEC has unveiled a rulemaking agenda that proposes clearer definitions for the offer and sale of digital assets, potential exemptions and safe harbors, and the possibility of permitting crypto trading on national securities exchanges and alternative trading systems. These steps mark a significant evolution from prior enforcement-heavy tactics, signaling the SEC under Paul Atkins’ leadership is shifting toward greater regulatory clarity and integration of crypto into mainstream regulation.
4. Why This Matters for Crypto Investors and Industry Participants
For crypto investors and entrepreneurs exploring new revenue sources or blockchain applications, the SEC’s new posture offers both reassurance and a path to legitimacy:
- Reduces Fraud Risk: The Cross-Border Task Force’s intensified oversight of pump-and-dump and gatekeeper misconduct provides clearer guardrails, reducing exposure to manipulative schemes.
- Regulatory Clarity: Efforts to define digital asset offering protocols and issuance standards support more predictable engagement in U.S. markets.
- Innovation-Friendly Frameworks: The joint SEC-CFTC roundtable and emerging rulemaking indicate an openness to enabling DeFi, event contracts, perpetual derivatives, and other novel structures within a compliant framework.
- Global Market Integrity: Increased enforcement across jurisdictions deters bad actors from exploiting international boundaries to evade regulatory oversight.
5. Suggested Insertion: Graph or Diagram
【Cross-Border Task Force Structure & SEC-CFTC Coordination Flowchart】
This diagram should visually map out:
- The Cross-Border Task Force linked to various SEC divisions (Enforcement, Corp Finance, Examinations, Trading & Markets, International Affairs).
- Parallel coordination between SEC and CFTC, with arrows indicating the September 29 roundtable and key areas of regulatory focus (crypto, DeFi, 24-hour trading, event contracts).
Place this figure after Section 3 for visual clarity.
6. Summary and Forward Outlook
The SEC’s creation of the Cross-Border Task Force marks a watershed moment in U.S. regulatory strategy—one that combines rigorous enforcement with proactive policy development. By targeting international fraud, scrutinizing facilitators, and coordinating across divisions and agencies, the SEC is laying the groundwork for a more secure and innovation-friendly investment environment.
As new frameworks emerge and guidance evolves, crypto innovators and investors have the opportunity to engage in U.S. capital markets responsibly and confidently—all while benefiting from reduced fraud risk, improved transparency, and more stable regulatory footing.
