SEC’s New Watchdog Prioritizes Crypto Fraud Crackdown

Katherine Reilly has stepped into her role as Acting Inspector General at the U.S. Securities and Exchange Commission, bringing a laser focus on digital asset misconduct. The veteran regulator, who assumed the position on May 20, inherits an enforcement landscape where cryptocurrency scams rank among the most pressing threats to market integrity.

Reilly’s appointment follows the retirement of Deborah Jeffrey after two years leading the SEC’s oversight arm. With prior experience as Deputy Inspector General and Counsel, she’s no stranger to the complexities of policing financial markets—particularly the rapidly evolving crypto sector. Her track record suggests rigorous scrutiny of how the agency monitors digital assets will continue unabated.

The Office of Inspector General’s recent reports under Reilly’s leadership have consistently flagged cryptocurrency fraud as a top operational vulnerability. This focus comes as the SEC ramps up its enforcement capabilities against illicit activities in decentralized finance markets.