On 5 September 2025, the United States Securities and Exchange Commission (US SEC) announced the creation of a Cross-Border Task Force within its Division of Enforcement. The task force is established to enhance the SEC’s ability to investigate and prevent fraudulent conduct by foreign-based companies targeting U.S. investors. The US SEC Crypto task force will prioritise investigations into potential violations of U.S. federal securities laws involving overseas issuers, including market manipulation practices such as “pump-and-dump” and “ramp-and-dump” schemes. It will also focus on gatekeepers, particularly auditors and underwriters, that facilitate these companies’ access to U.S. capital markets. The initiative further highlights regulatory concerns around entities from jurisdictions such as China, where state involvement and systemic risks present distinct investor protection challenges. By consolidating investigative resources, the US SEC will deploy all available enforcement tools to safeguard U.S. markets from cross-border fraud.
US SEC Statement on the Task Force Mandate
US SEC release (5 September 2025), stated: “The Cross-Border Task Force will focus initially on investigating potential U.S. federal securities law violations related to foreign-based companies, including potential market manipulation, such as ‘pump-and-dump’ and ‘ramp-and-dump’ schemes.”
US SEC Chairman Paul S. Atkins emphasised: “We welcome companies from around the world seeking access to the U.S. capital markets. But we will not tolerate bad actors… that attempt to use international borders to frustrate and avoid U.S. investor protections.”
Division of Enforcement Director Margaret A. Ryan added: “The Cross-Border Task Force will leverage the Division of Enforcement’s resources and expertise to combat international market manipulation and fraud.”
Enforcement Focus on Foreign Issuers and Gatekeepers
The US SEC stated that the task force will concentrate on overseas issuers accessing U.S. capital markets. This includes scrutiny of gatekeepers such as auditors and underwriters whose roles are critical to investor confidence. The regulator also showed its intent to evaluate entities operating in jurisdictions with limited transparency and heightened risks, naming China as a jurisdiction of concern.
U.S. Securities Law Compliance.. mandatory?
The US SEC Chairman directed staff across other divisions, including Corporation Finance, Examinations, Economic and Risk Analysis, and Trading and Markets, to explore additional measures. These may include new disclosure guidance and potential rule changes designed to provide stronger safeguards for U.S. investors.
Compliance for Global Market Participants
The US SEC’s action mandates that cross-border operations will face oversight and under the lens of Task Force. Issuers, intermediaries, and auditors must:
- Ensure compliance with U.S. disclosure and reporting standards.
- Strengthen internal controls and cross-border compliance mechanisms.
- Prepare for expanded obligations through additional disclosure or regulatory reforms.
Geopolitical Implications of US SEC Cross Border Task Force
Cross-Border Task Force, under US SEC establishes a global compliance requirement to protect investors in an interconnected global market. The explicit reference to China reflects broader geopolitical challenges as U.S. regulators confront risks linked to foreign state-controlled enterprises. The statement of US SEC follows: “In addition, it will examine potential securities law violations related to companies from foreign jurisdictions, such as China, where governmental control and other factors pose unique investor risks.”
For global issuers, the message is clear: participation in U.S. capital markets requires accountability and alignment with U.S. investor protection standards.
