SEC Warns of More Charges for Exchanges and DeFi

SEC Chairman Gary Gensler

David Hirsch, the person in charge of making sure people follow the rules for cryptocurrencies at the SEC, has mentioned that besides Coinbase and Binance, there are other places where people are not following the rules when it comes to exchanges and DeFi.

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The person in charge of making sure that crypto businesses follow the rules, David Hirsch, said that the SEC is not finished with its efforts to enforce the law in the crypto world.

He mentioned that they have more plans, but also recognized that they have a lot of work already, and can’t tackle everything all at once. They want to ensure that crypto exchanges and DeFi projects, like Coinbase and Binance, play by the rules just like everyone else.

SEC’s Crypto Enforcer Investigating More Firms like Coinbase and Binance

David Hirsch, who heads the SEC’s crypto enforcement office, stated that they are looking into other companies involved in activities similar to those of Coinbase and Binance. He mentioned that compliance issues extend beyond just these two platforms.

Hirsch emphasized their commitment to bringing charges against such firms. However, the SEC is already dealing with several complex crypto cases in federal courts, and not all of them have resulted in favorable outcomes, as seen in the recent Ripple ruling appeal.

SEC’s Ongoing Crypto Focus Includes Brokers, Exchanges, and DeFi

David Hirsch emphasized that the SEC’s interest in the crypto world goes beyond just the big exchanges. They plan to remain vigilant regarding intermediaries like brokers, dealers, and clearing agencies that operate in the crypto space but may not be meeting their regulatory requirements.

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Hirsch also made it clear that DeFi projects will not escape the SEC’s scrutiny. They will continue to investigate and monitor the DeFi space, and the label of “DeFi” won’t deter them from their regulatory work.

SEC Faces Challenges in Enforcing Crypto Regulations

The SEC, known for its traditional approach to enforcing rules, typically deals with large, well-established financial firms through negotiations. However, when it comes to digital asset companies, the seriousness of the charges often leads to legal battles. These companies, fearing severe consequences, choose to go to court.

David Hirsch, head of the SEC’s crypto enforcement unit, acknowledged that the SEC has limited resources, especially compared to the financial giants it usually deals with. They are currently handling a significant amount of litigation, which has stretched their capacity.

A. Kristina Littman, the event’s moderator and former SEC crypto enforcement chief, pointed out that it seems like the SEC is operating at full capacity. Hirsch agreed and mentioned that there are thousands of tokens and numerous centralized platforms operating without proper registration. With limited resources, the SEC can only do so much to enforce regulations in the crypto space.

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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