SEC Chief Says Regulators Must Do More on Cybersecurity

By:
Chris Gaetano
Published Date:
Sep 6, 2017
Internet Crime

SEC Chair Jay Clayton said that cybersecurity will be one of his top enforcement issues this year, believing that regulators are not doing enough to protect investors, particularly smaller ones, from systemic and substantial risks, according to Reuters. Speaking at an NYU panel discussion on Tuesday, Clayton said that the American investing public does not fully understand the vast implications of cybersecurity risks and thinks there should be better disclosures in that area. Stephanie Avakian, co-director of the SEC’s enforcement division, who joined Clayton on the panel along with co-Director Steven Peikin, added that there has been a rise in cases where financial information is stolen to gain market advantage. Other areas of focus will include ensuring financial firms take the appropriate steps to safeguard sensitive information; cyber-related disclosure failures; and the growing prevalence of “initial coin offerings" of new cryptocurrencies. 

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