In a recent forum, David Hirsch, the head of the SEC's Virtual Currency Division, has sent out a warning that lawsuits against crypto exchanges and DeFi projects are far from over.
The regulatory scope is broadening to include brokers, dealers, and other entities. Find out what this means for the crypto industry and why the SEC’s resources might be hitting a wall.
Contents
Overview of SEC's Aggressive Stance on Crypto Regulation
David Hirsch, the head of the SEC's Cyber Unit and Virtual Currency Division, recently stated that the SEC's scrutiny of major cryptocurrency exchanges such as Coinbase and Binance, as well as decentralized finance (DeFi) projects, is far from over.
Speaking at the Securities Enforcement Forum Central in Chicago, Hirsch revealed that his office is actively investigating companies engaged in similar activities to these major platforms.
Hirsch declared that the SEC's focus is not limited to just Coinbase and Binance but also extends to many other enterprises operating in a similar manner.
He emphasized that the agency has been involved in numerous complex crypto lawsuits already, and despite recent setbacks, such as the ongoing appeal in the Ripple case, their actions will continue.
Brokers and Other Entities Also on SEC’s Radar
The SEC's interest in the cryptocurrency sector extends well beyond well-known exchanges.
Hirsch highlighted that "brokers, dealers, exchanges, and clearing agencies" that are neglecting their regulatory duties by either failing to register or not providing full disclosures are also under scrutiny.
Hirsch mentioned that DeFi projects can’t escape the agency’s scrutiny. "We intend to continue our investigations and take an active role in this space, and the label of DeFi won't deter our ongoing activities," he said.
Limitations of SEC’s Enforcement Efforts
Although the SEC has traditionally taken a moderate approach to enforcement, there are constraints, especially budget-wise, that limit the number of cases they can pursue.
A. Kristina Littman, the event's moderator and former head of the SEC's crypto enforcement, pointed out that the agency seems to have reached its limits.
-
SEC Files New Claims Against Binance US: Unveils Concerns on Customer Asset Management
The SEC files new legal documents against Binance US, raising concerns about the management of customer assets and the involvement of custodial firm Ceffu. Learn about the SEC's recent demands for transparency and their criticisms against Binance's handling of evidence.
続きを見る