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SEC's Crypto Enforcement Chief Warns of More Actions
20/9/2023
David Hirsch, the Chief of the Crypto Asset and Cyber Unit at the SEC's Division of Enforcement, has issued warnings regarding ongoing investigations and potential charges within the cryptocurrency industry. He emphasized the SEC's intention to continue pursuing charges, referencing previous cases against Coinbase and Binance in June. The agency is looking into various companies operating similarly to these exchanges, even those not considered high-ranking exchanges. The focus is on intermediaries, including brokers, dealers, exchanges, and clearing agencies, that may not meet their regulatory obligations, such as registration and disclosure requirements.
Despite the SEC's interest in regulating the crypto sector, Hirsch acknowledged the limitations of their enforcement capabilities, given the vast number of tokens and exchanges currently in operation. He also highlighted the SEC's intention to target decentralized finance (DeFi) projects, emphasizing that simply labeling something as "DeFi" will not shield it from regulatory action. The SEC's actions, along with those of other agencies like the CFTC, indicate that DeFi projects are not considered beyond the scope of regulatory jurisdiction. Several DeFi projects and associated companies have faced subpoenas and enforcement actions from these agencies, signaling increased scrutiny within the DeFi space.
