Irish Journalist: “Crypto Crackdown Looms: U.S. SEC’s Enforcement Chief Sets Sights on Exchanges and DeFi

"SEC's Crypto Enforcer Vows Continued Crackdown on Exchanges and DeFi Projects Despite Heavy Litigation Load"

SEC’s Crypto Enforcer Vows to Continue Pursuit of Crypto Exchanges and DeFi Projects

David Hirsch, head of the U.S. Securities and Exchange Commission’s (SEC) Crypto Assets and Cyber Unit, has stated that the agency is not finished pursuing crypto exchanges and decentralized finance (DeFi) projects that violate securities laws. Hirsch made these remarks during the Securities Enforcement Forum Central in Chicago, where he acknowledged the heavy workload of the agency’s enforcement office but emphasized their commitment to bringing charges against entities engaging in similar activities to Coinbase and Binance.

Hirsch revealed that the SEC is currently investigating other firms involved in activities similar to those seen on major platforms like Coinbase and Binance. He stated, “We’re going to continue to bring those charges,” indicating that the agency has several businesses on its radar. Hirsch also highlighted that the SEC’s interest in the crypto industry extends beyond exchanges, stating, “We’re going to continue to be active as to intermediaries… within our jurisdiction and not meeting their obligations.”

Furthermore, Hirsch emphasized that the SEC’s enforcement division will not overlook DeFi projects. He stated, “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.”

Unlike its previous approach of targeting misdeeds at regulated businesses, the SEC has been forced to litigate against digital asset companies due to the potential threat to their existence. Hirsch acknowledged the agency’s limited resources and budget, stating that there are more tokens and centralized platforms than they have the capacity to pursue directly.

The SEC’s crypto enforcement unit has been actively involved in a number of complex crypto cases in federal courts. However, the agency’s efforts have not always resulted in complete success, as seen in its recent appeal of a Ripple ruling.

Hirsch’s remarks indicate that the SEC is committed to maintaining its aggressive stance towards the crypto industry. The agency will focus on intermediaries, including brokers, dealers, exchanges, and clearing agencies, who fail to meet their obligations or provide sufficient disclosures. With the SEC’s continued interest in crypto, it is clear that the regulatory landscape for the industry will remain challenging.

In conclusion, David Hirsch’s statements at the Securities Enforcement Forum Central in Chicago highlight the SEC’s determination to pursue crypto exchanges and DeFi projects that violate securities laws. The agency’s enforcement office is investigating other firms engaged in similar activities to Coinbase and Binance, and Hirsch emphasized that the SEC’s interest extends to intermediaries and DeFi projects. While the SEC faces limitations due to its resources, it remains committed to its enforcement efforts in the crypto industry.

Martin Reid

Martin Reid

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