SEC to Introduce Stricter Crypto Regulations, Focusing on Violations Across the Industry, Including DeFi.
The United States Securities & Exchange Commission (SEC) is taking strict action against digital asset companies like Coinbase and Binance for breaking the law. An SEC official, David Hirsch, recently indicated that the SEC will be watching the industry even more closely.
This means that the market should be prepared for more potential charges, as the SEC looks to target other companies involved in wrongdoing within the industry.
SEC to Expand Crypto Enforcement Beyond Coinbase and Binance
David Hirsch, who leads the SEC’s Crypto Assets & Cyber Unit, has revealed that the agency is not only focused on cases involving Coinbase and Binance but also other cryptocurrency entities that have broken the law. The SEC took legal action against these major exchanges for selling unregistered securities.
Hirsch hinted at more regulatory actions to come, extending to the broader crypto industry. His office is actively monitoring crypto companies that violate financial regulations, indicating that the SEC has several entities in its sights. Market participants should be prepared for additional charges from the regulator in the near future.
Hirsch also confirmed the SEC’s intention to crack down on intermediaries like exchanges, clearing agencies, dealers, and brokers that fail to meet registration requirements.
Furthermore, the SEC is keeping a close eye on the growing decentralized finance (DeFi) sector. Despite DeFi projects claiming to prioritize decentralization, Hirsch emphasized that labeling a project as DeFi does not exempt it from the commission’s oversight.
Notably, there has been a rise in fraudulent activities targeting DeFi platforms recently, with some projects experiencing significant losses due to hacks, such as the Zunami protocol’s $2.1 million hack in August.
SEC Faces Challenges Amidst Litigation Over Enforcement Actions
While discussing the SEC’s enforcement efforts, the official acknowledged that the commission is currently dealing with numerous legal disputes, which can limit its capacity to take further action.
The SEC has faced various accusations from the entities it targets, with many of them filing petitions and lawsuits against the regulator.
Many crypto enthusiasts have voiced their concerns about the SEC’s unclear regulatory stance, with some suggesting that it poses a threat to the crypto market. Additionally, various companies, exchanges, and firms have been successfully challenging the SEC in legal battles.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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