Hi everyone. This breaking news article will cover the SEC (Securities and Exchange Comission)'s annoucement of their new "Cyber Unit."

Interestingly, their press release specifies that the Cyber Unit will also include some powers related to cryptocurrencies and ICOs (initial coin offerings). Let's have a look!

The Cyber Unit Press Release

The SEC released a Press Release today (Sept 25) in Washington D.C. announcing "initiatives to combat cyber-based threats," utilizing the creation of a new department called a "Cyber Unit."

Let's look at the powers the SEC plans to assign to the cyber unit (important powers have been bolded):

The Cyber Unit will focus the Enforcement Division’s substantial cyber-related expertise on targeting cyber-related misconduct, such as:

• Market manipulation schemes involving false information spread through electronic and social media
• Hacking to obtain material nonpublic information
• Violations involving distributed ledger technology and initial coin offerings
• Misconduct perpetrated using the dark web
• Intrusions into retail brokerage accounts
• Cyber-related threats to trading platforms and other critical market infrastructure

Most notably, we see that this Cyber Unit will be paying close attention to "distributed ledger technology," which is another way to refer to blockchains, which is the science/cryptography behind almost every single digital cryptocurrency, from Bitcoin to Steem.

Powers and Capabilities

Additionally, the powers the SEC seems to be giving are very vague and broad. Simply giving the Cyber Unit oversight over blockchains seems to imply they can track down cryptocurrency users or monitor entire cryptocurrencies. The Cyber Unit will likely use such powers to investigate criminals who use cryptocurrencies such as Bitcoin to mask their trail.

Lastly, we see that the SEC plans to control violations involving "initial coin offerings," or ICOs, which are systems new cryptocurrency creators use to publicize their cryptos and distribute them to a large number of people.

Though many ICOs have grown to become successful and useful cryptocurrencies, there are also many scams. Many investors get tricked into handing money to an ICO and getting nothing in return. While it's not a good thing to see extensive regulatory oversight into cryptocurrencies, many users are delighted to see that the SEC has some organized plan to deal with crypto-based scams and illegal trades.

---

Thanks for reading,
— @mooncryption

image sources: 1, 2
announcement: @mooncryption is now on other social media! Use the buttons at the right to find our various social media pages (Facebook, Twitter, Steemit) :)