SEC Gears Up for More Crypto Regulation
David Hirsch, the head of crypto enforcement at the SEC, has revealed that the recent crackdown on Coinbase and Binance is just the beginning. The SEC is investigating other exchanges and DeFi platforms that may be operating outside of legal boundaries. This includes both big names and smaller suspects.
What is SEC Planning?
The SEC’s Crypto Assets and Cyber Unit, led by Hirsch, is working to ensure compliance in the crypto space. All entities under the SEC’s jurisdiction, including DeFi projects, must meet regulatory obligations such as registration and disclosure.
Hirsch emphasized that the SEC will be active in pursuing intermediaries who fail to meet their obligations. While the SEC has traditionally pursued settlements with large firms, it is now more inclined to engage in litigation due to the significant impact charges can have on companies.
Clamping Down SEC’s Prowess on Defi Projects
The SEC and CFTC have made it clear that they consider DeFi within their authority. The CFTC took legal action against Ooki DAO in 2022, leading to a halt in its operations. The SEC also issued a subpoena to SushiSwap this year. Ripple lawyer John E. Deaton questions the SEC’s ability to prevail in cases against the industry.
Hot Take: Will the SEC Prevail?
The SEC’s regulatory stance on crypto is being challenged by critics who believe it may not hold up legally. As the SEC continues its enforcement efforts, questions remain about its ability to succeed in cases against the industry.
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