Crypto Complaints Not Deterring SEC Enforcement Approach, Official Says
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SEC Enforcement Approach
Enforcement Director Gurbir Grewal stated Friday at a conference in Washington that the SEC has heard the "jeremiads" from members of the cryptocurrency business about being unfairly singled out. Still, he doesn't intend to back down. He continued, saying that to do otherwise would mean forgoing individuals who had been injured by market-harming events, including many investors who were poor and of color. Mr. Grewal said,
"Critics are upset because we're not giving crypto a pass from the application of well-established regulations and precedents."
The remarks made by the enforcement director highlighted the recent examination of digital assets by his organization. They came after a Thursday speech by SEC Chairman Gary Gensler, expressing support for Congress giving the Commodity Futures Trading Commission (CFTC) some power over cryptocurrencies. In his remarks, Mr. Gensler also emphasized that most crypto assets should be regarded as securities, the regulation of which is the responsibility of the SEC.
Crypto Regulation By Enforcement
In a hazy legal landscape, some members of the cryptocurrency business have accused the SEC of pursuing a "regulation by enforcement" strategy. The SEC announced in May that the size of its enforcement section, which specializes in cryptocurrency assets and cyber threats, had nearly doubled.
Some corporations that deal in digital assets have vehemently opposed the SEC's enforcement strategy. In a blog post from July, the chief legal officer of Coinbase Global Inc., which runs a powerful cryptocurrency platform, accused the agency of trying to regulate all digital assets, not just securities, by utilizing sporadic enforcement actions.
