SEC Division Director Details Cybersecurity And Cryptocurrency Enforcement Efforts

SEC Division of Enforcement (the "Division") Co-Director Steven Peikin detailed efforts to address emerging risks related to developing technologies and market complexity. In remarks at a UJA Federation Conference in New York, Mr. Peikin detailed strategies and initiatives undertaken by the Division with regard to initial coin offerings ("ICOs"), cryptocurrencies and cybersecurity.

Noting a significant increase in the quantity of funds raised by ICOs, Mr. Peikin cautioned that these offerings are accompanied by outsized risks for retail investors. Mr. Peikin stated that ICOs have the potential to provide value by offering investors innovative ways to access capital markets. However, he said, ICOs may lack track records, adequate business models or sufficient security protocols, and some are simply outright frauds. He explained that the Division is focused on a "balanced" approach that allows legitimate offerings to function effectively while identifying and