The United States Securities and Exchange Commission (SEC) is planning to bring more enforcement actions against cryptocurrency firms seen as violating securities laws in the same way as Binance and Coinbase, according to David Hirsch, head of the agency’s Crypto Assets and Cyber Unit.
Hirsch said the SEC could bring new charges against cryptocurrency brokers, dealers, exchanges, clearing agencies, and others who fail to register with the agency or make appropriate disclosures, according to a report from CoinDesk.
The SEC executive stated that the agency is aware of and investigating industry firms operating similarly to Binance and Coinbase, adding that the sector’s compliance violations “hold true well beyond any two entities.”
Recall that the SEC filed charges against Binance and Coinbase in June, accusing the entities of violating securities rules by offering unregistered securities to US investors. Both firms have denied such claims.
Charges Not Limited Centralized Exchanges
Meanwhile, Hirsch stated that his enforcement office’s scrutiny goes beyond centralized exchanges but will also target decentralized finance (DeFi) projects.
“We’re going to continue to conduct investigations, we’re gonna be active in the space, and adding the label of DeFi is not going to be something that’s going to deter us from continuing our work,” he said.
SEC Crackdown on Crypto
The SEC has been heavily cracking down on crypto firms in recent years as the agency believes products offered by these entities are unregistered securities and thus fall under its purview. While industry firms have argued against these claims in a series of litigation with the agency, the US Congress is yet to implement legislation to clarify the status of crypto.
Meanwhile, the SEC has not seen much success in its legal dispute against crypto platforms. For instance, in July, the SEC lost a case against Ripple Labs, a blockchain payments company, over whether its XRP token is a security.
So far, the SEC has brought over 100 enforcement actions against crypto firms, many of which have ended in settlements.
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