The Securities and Exchange Commission (SEC) Has Ramped Up Its Oversight of the Bitcoin Industry by Charging Unicoin with Fraud

The Securities and Exchange Commission has ramped up its oversight of the bitcoin industry by charging Unicoin with fraud and delaying the licensing of crypto

The Securities and Exchange Commission (SEC) has been stepping up its oversight of the bitcoin industry with an emphasis on fraud detection and the postponement of licensing decisions for crypto exchange-traded funds (ETFs).

Unicoin founders face charges of defrauding investors

In a recent development, the SEC has charged three leaders of a New York-based cryptocurrency startup, Unicoin, with scamming more than 5,000 investors. According to the government, Unicoin fabricated claims of assets-backed tokens and managed to raise $110 million through fraudulent means.

The corporation reportedly created fake regulatory permission and deceived investors by exaggerating the utility of its tokens in advertisements. As stated by the SEC, Unicoin's actions induced investors into believing that the tokens were backed by valuable assets and subject to regulation, which was not the case.

The agency's investigation revealed that Unicoin had few assets despite its representations to investors. The case underscores the SEC's focus on combating fraud and deception in digital assets.

The agency is also postponing rulings on several crypto ETF proposals due to concerns over market volatility and investor safety. These delays affect applications from major financial firms to introduce spot Bitcoin and Ethereum ETFs.

The SEC is seeking more information to ensure that any approved ETF will comply with securities rules. The delays frustrate stakeholders in the sector who are eager for mainstream cryptocurrency investing platforms.

The commission is exercising caution, which aligns with its primary goal of protecting individual investors from the effects of speculative risks. There is no set date for when exchange-traded funds will get the go-ahead.

Under Commissioner Hester Peirce's initiative, the creation of a Crypto Task Force aims to provide clear rules for the industry.

With public sessions accessible at SEC headquarters, the task group has held roundtable events addressing crypto custody, trading, and security status.

To enhance market knowledge, the agency's Division of Economic and Risk Analysis has just released information on public issuers and exempt offers. These initiatives aim to educate investors and promote ethical behavior.

The ETF delays and the Unicoin case are part of broader efforts to control emerging technology. The SEC's Cyber and Emerging Technologies Unit, set up in February 2025, focuses on combating cyber-related wrongdoing and fostering new ideas.

The section, which replaces the Crypto Assets and Cyber section under She D'Allaird, highlights the commission's commitment to keeping consumers safe in the evolving technological landscape.

The SEC's strict posture also covers other areas, such as executive salary disclosure rules.

Scheduled on June 26, 2025, a roundtable will examine these rules and invite public comments to help improve policy. Chairman Paul S. Atkins emphasized how public opinions help to shape sound policies.