More Companies And DeFi Projects Will Come Under SEC Scrutiny
An SEC spokesperson said that the regulator is conducting more investigations into cryptocurrency companies and DeFi projects: more indictments are expected.
David Hirsch, Chief of the Crypto Asset and Cyber Unit of the SEC’s Division of Enforcement, speaking at the SEC’s Securities Enforcement Forum Central, said the regulator will continue to bring charges after launching investigations against Coinbase and Binance. He said the regulator is targeting similar companies, especially smaller ones. Hirsch emphasized that this could include brokers, clearing agencies, exchanges and any cryptocurrency companies under U.S. jurisdiction that are not complying with the laws. However, Hirsch recognized the limitations of the regulator, as there are more than 25,000 tokens and countless exchanges.
SEC plans to go after the DeFi space. According to the regulator, "adding the DeFi label" will not save projects from regulatory action. The SEC and other agencies believe the DeFi space is covered from the authority. In September alone, the CFTC filed charges against three DeFi projects. And SushiSwap has fallen into the SEC's crosshairs. The project may have associated companies whose activities displease regulators.
Regulation of the crypto space is a topic of debate. Some believe that it is necessary, as it will protect investors from unscrupulous market participants. Others say it goes against the nature of the technology itself. In July, Congress advanced a cryptocurrency bill. And while it goes through various bureaucratic stages, opposing sides are pushing their ideas one way or another. While the SEC feels comfortable fining crypto industry participants and testing its limits of what is allowed, crypto companies are demanding clarity from the government. Coinbase recently announced a major campaign that aims to push for a cryptocurrency bill and limit the power of regulators.
Brian Armstrong Gary Gensler Binance Coinbase Exchange
