SEC Forms Cross-Border Task Force With Implications For Foreign Issuers, Auditors And Other Gatekeepers

On September 5, 2025, the U.S. Securities and Exchange Commission (SEC) announced the creation of a Cross-Border Task Force designed to enhance the Enforcement Division's efforts to combat fraud involving foreign companies. The announcement is the first statement from the SEC regarding enforcement priorities since the appointment of Judge Margaret Ryan as the agency's Director of Enforcement on August 21, 2025. The Task Force's initial focus will be on foreign-based market manipulation that harms U.S. investors, such as pump-and-dump and ramp-and-dump schemes. The announcement specifically mentions China-based companies and warns of increased scrutiny for gatekeepers who assist foreign issuers, such as auditors and underwriters. The Task Force's explicit focus on foreign companies and individuals is also consistent with the Trump administration's "America First" approach to protecting U.S. markets and interests more broadly, including under the Foreign Corrupt