The Securities and Exchange Commission (SEC) has launched an investigation into the digital communication habits of Wall Street bank employees, according to three unnamed sources close to the matter. told Reuters.

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Per the report, SEC employees have reached out to several Wall Street banks in recent weeks to ask whether they have adequately documented their employees’ workplace communications, with a focus on their personal devices.

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SEC regulations require broker-dealers to record all communications related to the trade. However, with no law providing any specific guidance on how employers should monitor equipment, financial institutions must carefully balance privacy concerns with compliance with this rule.

With many employees working remotely since the start of the pandemic, enforcement of restrictions on the use of personal email, text and social media channels has been disrupted. Reuters reported that a financial institution has now been part of a long-term investigation into its compliance with this regulation.

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Although the sources cited in the article did not name the institution, they indicated that this industry-wide compliance investigation may stem from findings from the institute’s investigation.

JPMorgan Chase & Company disclosed in August that it was dealing with “regulatory inquiries regarding compliance with records protection requirements with respect to business communications sent over electronic messaging channels.”

newsweek Reached out to the SEC for comment.

In a speech last week, the SEC’s Enforcement Division director Gurbir Grewal stressed that banks should stay ahead of “the many issues raised by the increased use of personal devices, new communication channels and other technological advances.”

According to Reuters, this sweep stands as another sign that SEC enforcement has increased under Democratic leadership.

According to Businesshala, SEC Chairman Gary Gensler has asked employees of the agency to consider new regulations in crypto oversight, online brokers and green investment funds, noting that their proposals “remain under the SEC’s 87-year history.” Let us outline one of the most ambitious agendas in the world. “

In an address before the US Senate Banking Committee on October 5, Gensler said: “Right now, the vast majority of the crypto sector is sitting – not operating within the regulatory framework – protecting investors and consumers from illegal activity. protection against, and ensuring financial stability.

“Currently, we do not have adequate investor protection in crypto finance, issuance, trading, or lending. Clearly, at this point in time, it is more like the Wild West or the old world of ‘buyer beware’ that preceded securities laws. exists. Were enacted. This asset class is fraught with fraud, scams and abuse in some applications. We can do better.”