invezz.com
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, invezz.com 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.
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.
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