The U.S. Securities and Exchange Commission is intensifying efforts to protect American investors from foreign-linked market manipulation schemes. SEC Chairman Paul Atkins warned that suspected “ramp-and-dump” activity tied to China-linked companies is under investigation, highlighting risks posed by manipulative trading practices and foreign actors in U.S. markets.
SEC Chairman Paul Atkins detailed the crackdown during an appearance on Mornings with Maria, where he emphasized that the agency is scrutinizing trading irregularities involving small, China-related stocks listed on U.S. exchanges. The schemes under investigation involve inflating share prices—often through coordinated buying or promotion—and then selling at the artificially high levels, leaving retail investors with steep losses.
Atkins noted the formation of a dedicated Cross-Border Task Force within the SEC’s Enforcement Division to target such activity, particularly when it involves foreign-based firms that could evade U.S. investor protections. This task force focuses on violations of U.S. securities laws, including “pump-and-dump” and “ramp-and-dump” schemes, and examines not only issuers but also intermediaries like auditors and underwriters that help foreign firms access U.S. capital markets.
The chairman highlighted a recent case in which the SEC halted trading in a New York Stock Exchange–listed stock after its price spiked inexplicably and the company could not provide any legitimate reason for the surge. Regulators are now investigating whether the activity was tied to manipulative practices.
Atkins stressed that while the United States welcomes global companies seeking access to U.S. markets, the SEC will not tolerate bad actors attempting to exploit international borders to avoid investor protections. The task force’s work is aimed at strengthening enforcement tools and closing loopholes that foreign entities may use to harm U.S. investors.
The warnings come amid broader concerns about foreign influence and financial risk tied to China. Lawmakers and regulatory officials have increasingly called for tighter oversight of Chinese firms listed in the U.S., including stronger disclosure rules and heightened scrutiny of auditing practices. Many investors have lost billions due to suspected fraud in small-cap stocks, particularly those promoted on social media and tied to nontransparent corporate structures.
Conservative critics argue that America must prioritize market integrity and national security, warning that lax oversight of foreign issuers not only endangers investors but also undermines confidence in U.S. financial markets. The SEC’s actions signal a tougher stance against cross-border schemes that could exploit regulatory gaps and leave everyday Americans at risk.
