The SEC’s Enforcement Actions in Fiscal Year 2023
The U.S. Securities and Exchange Commission (SEC) has released its enforcement outcomes for the fiscal year 2023. This announcement revealed a 3% increase in total enforcement actions compared to the previous year, with a total of 784 actions filed. SEC Chair Gary Gensler emphasized the importance of the Division of Enforcement’s work, stating that it benefits the investing public.
When it comes to crypto assets, the SEC described fiscal year 2023 as highly productive and impactful in terms of enforcement efforts related to crypto asset securities. The regulator detailed various enforcement measures taken within the cryptocurrency space, which included addressing billion-dollar crypto fraud schemes, unregistered crypto asset offerings, platforms, and intermediaries, as well as illegal celebrity endorsements.
The SEC highlighted several high-profile cases involving companies and individuals such as Terraform Labs, Do Kwon, Richard Heart, Samuel Bankman-Fried (SBF), Genesis, Gemini, Celsius, Kraken, Nexo, Beaxy, Bittrex, Binance, and Coinbase. Additionally, the SEC filed its first actions against non-fungible token (NFT) issuers during this fiscal year.
Furthermore, the SEC took action in cases where influencers allegedly promoted crypto asset securities without disclosing their compensation for doing so. The individuals implicated in these cases included Paul Pierce, Kim Kardashian, Lindsay Lohan, Jake Paul, Michele Mason (Kendra Lust), Miles Parks McCollum (Lil Yachty), Shaffer Smith (Ne-Yo), Aliaune Thiam (Akon), DeAndre Cortez Way (Soulja Boy), and Austin Mahone.
Last week, another U.S. regulator known as the Commodity Futures Trading Commission (CFTC) disclosed that it had filed a record number of crypto enforcement actions during fiscal year 2023. The CFTC reported bringing 47 actions related to digital asset commodities during this period.
Hot Take: The Impact of SEC’s Crypto Enforcement Actions
The SEC’s recent announcement regarding its enforcement actions in the crypto space reflects the regulatory scrutiny surrounding cryptocurrency activities and underscores the importance of compliance with securities laws. With high-profile cases targeting various aspects of the crypto industry and influencers involved in promoting crypto assets without proper disclosures, these developments serve as a reminder for market participants to adhere to regulatory guidelines and transparency standards when engaging in crypto-related activities.
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