SEC Vows to Continue Crackdown on Crypto Industry
The Securities and Exchange Commission (SEC) has stated that it will not stop its crackdown on the crypto industry and will extend its enforcement efforts beyond major exchanges like Coinbase and Binance.US. David Hirsch, head of the SEC’s Crypto Assets and Cyber Unit, emphasized that the agency will continue to bring charges, conduct investigations, and be active in the space. Hirsch also noted that the label of DeFi will not deter them from their work. The SEC is currently investigating other firms engaged in similar activities to Coinbase and Binance.US.
Brokers and Dealers Within SEC Jurisdiction
Hirsch highlighted that compliance breaches in the industry extend beyond these two entities. He stated that brokers, dealers, exchanges, clearing agencies, and other market players in the crypto space fall under the SEC’s jurisdiction if they fail to meet their obligations through registration or by providing inadequate disclosures. This indicates that the SEC’s enforcement efforts are not limited to major exchanges but encompass various participants in the industry.
SEC’s Enforcement Capacity
Hirsch admitted that there are limits to what the SEC can do due to its existing workload. He acknowledged that there are numerous tokens in circulation, estimated at around 20,000 to 25,000, which exceed the agency’s resources for direct pursuit. Additionally, Hirsch mentioned the presence of unregistered exchanges acting as centralized platforms. These factors suggest that while the SEC intends to continue its crackdown on the crypto industry, it may face challenges in fully addressing all potential violations.
Hot Take: SEC Remains Committed to Regulating Crypto
The SEC’s head of Crypto Assets and Cyber Unit has reiterated the agency’s commitment to enforcing regulations within the crypto industry. Despite limitations in resources, the SEC is determined to bring charges, conduct investigations, and ensure compliance across various market players. The expansion of enforcement efforts beyond major exchanges demonstrates the SEC’s intention to address compliance breaches throughout the industry. While the agency may face challenges in keeping up with the vast number of tokens and unregistered exchanges, its focus on maintaining regulatory oversight remains strong.
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