SEC promises a rocky path for crypto entities daring to sidestep regulations

September 19, 2023 09:00 PM PDT | By Invezz
Follow us on Google News:

The United States Securities & Exchange Commission has been cracking down on digital assets, filing suits against Coinbase and Binance for law violations. Meanwhile, SEC official David Hirsch promised more scrutiny during the Securities Enforcement Forum Central on 19 September.

That means the market should brace for more potential charges, targeting other industry players as the regulator confirms more crooks within the industry.

SEC targets more lawbreakers

David Hirsch, the agency’s head of Crypto Assets & Cyber Unit, stated that more cryptocurrency entities, other than Binance and Coinbase, have violated the law. The SEC sued the leading exchanges for selling unregistered securities.

Meanwhile, the official hinted at upcoming clampdowns by the commission, targeting the wider crypto sector.

Hirsch’s office targets crypto firms violating financial regulations, emphasizing that the agency had several entities on its radar. Market players can expect more charges from the regulator in the coming times.

Hirsch confirmed the possibilities of clamping down on market intermediaries such as exchanges, clearing agencies, dealers, and brokers failing to meet registration-related rules.

Also, the SEC targets the flourishing decentralized finance (DeFi) sector. While most of these platforms claim to focus on decentralization, Hirsch stated that labeling projects with the DeFi tag does not make them invisible to the commission.

Further, fraudulence activities targeting DeFi platforms have risen recently. For instance, reported that decentralized finance site Zunami protocol lost around $2.1Mfollowing a massive hack in August.

Chances of the SEC winning its lawsuits

Nonetheless, the official acknowledged that the commission faces many litigations, which limits its limits. The SEC has encountered several accusations as its targets file petitions and lawsuits against the regulator.

Twitter Screenshot

Crypto enthusiasts have criticized the agency for its unclear regulatory approach, with many stating that the SEC is threatening the crypto market. Furthermore, companies, exchanges, and firms are constantly defeating the agency.

Also, as seen here, the judge has denied regulator access to Binance US software amidst the ongoing lawsuit.

The post SEC promises a rocky path for crypto entities daring to sidestep regulations appeared first on Invezz.


The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media LLC (Kalkine Media, we or us) and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures/music displayed/used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it, as necessary.

Top Listed Companies