SEC Intensifies Focus On Cross-Border Fraud With New Enforcement Task Force

On September 5, 2025, the U.S. Securities and Exchange Commission ("SEC") announced the formation of a Cross-Border Task Force (the "Task Force") aimed at identifying and combating cross-border fraud that threatens U.S. investors. In particular, the task force will investigate securities law violations involving foreign issuers and market gatekeepers—auditors and underwriters—who facilitate foreign companies' access to U.S. capital markets. The SEC's announcement focuses particularly on China, noting the degree of government control among market actors and other factors.

The SEC has a long history of forming task forces to pursue broad administration imperatives. This most recent Task Force appears to represent a continuation of the Administration's America First Investment Policy by targeting foreign actors, muddling Chinese access to U.S. capital markets, and prioritizing enforcement against cross-border fraud.