SEC Targets Crypto Firms: A Controversial Move
The US Securities and Exchange Commission (SEC) has initiated enforcement actions against several cryptocurrency companies. This controversial decision has drawn criticism from a host of U.S. lawmakers and industry heavyweights who view this regulatory crackdown as potentially detrimental to the industry's growth.
Noncompliance Rules Crypto Industry, Says SEC Director
Gurbir Grewal, the director of the SEC's enforcement division, has made some alarming statements concerning the cryptocurrency industry's compliance record. According to Grewal, the crypto industry, in its entirety, is structured around noncompliance, which prompted the recent enforcement actions.
Enforcement Director Speaks at Law Event
Grewal voiced his concerns during a recent event co-hosted by Lowenstein Sandler law firm and Rutgers University Law School in New York. The event also featured Faryar Shirzad, Coinbase's chief policy officer. Grewal highlighted the SEC's thoughtful, step-by-step efforts to manage crypto-related matters, but lamented that these incremental approaches haven't successfully curtailed what the commission views as unregistered securities offerings.
SEC's Legal Tussle with Coinbase and Binance
The SEC's relationship with prominent crypto exchanges, Coinbase and Binance, has been fraught with disagreements since the commission issued a Wells notice to Coinbase in March. In response, Coinbase sought to compel the SEC to provide explicit regulations for digital assets in May. However, the SEC responded by filing a lawsuit against the crypto exchange, alleging several tokens as unregistered securities.
The Potential Impact and Upcoming Discussions
The outcome of this legal battle may hold significant implications for other crypto firms intending to operate legally in the United States. To discuss SEC oversight, lawmakers on the House Financial Services Committee have scheduled a meeting for June 22. The upcoming hearing is expected to offer more clarity on the evolving dynamics between the SEC and the cryptocurrency industry.