- SEC’s David Hirsch warns of impending charges for cryptocurrency exchanges and DeFi projects.
- Ongoing investigations into firms resembling Coinbase and Binance.
- Resource limitations pose challenges for the SEC in monitoring the vast crypto token landscape.
The leader of the SEC’s crypto-focused division has indicated that more allegations are on the horizon for the cryptocurrency industry.
David Hirsch, who heads the Cryptocurrency Assets and Cyber Unit within the US Securities and Exchange Commission (SEC), delivered a strong message to cryptocurrency exchanges and decentralized finance (DeFi) ventures.
Speaking at the Securities Enforcement Forum Center in Chicago, Hirsch disclosed that the agency is presently probing several companies engaged in activities reminiscent of those observed at Coinbase and Binance. He stressed that the compliance breaches within the industry go beyond these two entities.
“We will continue to lodge these allegations,” affirmed Hirsch, and he hinted that there are other enterprises under the SEC’s scrutiny operating in a manner akin to Coinbase and Binance.
Hirsch also emphasized that the SEC’s interest in cryptocurrencies extends beyond major exchanges. “We will remain proactive when it comes to intermediaries,” he asserted. This encompasses intermediaries, distributors, exchanges, stock market entities, or any other individuals involved in this sector who fail to meet their regulatory responsibilities.
According to Hirsch, the agency’s focus will also encompass DeFi projects. “We will persist in conducting investigations, and our presence in this domain will remain strong. Labeling platforms as DeFi will not deter us from our ongoing efforts,” added Hirsch.
Nevertheless, Hirsch acknowledged the limitations of the SEC’s enforcement capabilities. The SEC, with its modest budget in comparison to the financial juggernauts it confronts, also faces resource constraints. Hirsch concurred, saying, “Yes, we have a substantial number of ongoing cases.”
“There are more tokens in circulation than the SEC or any regulatory body has the resources to directly monitor—somewhere in the range of 20,000 to 25,000 based on my latest information,” he noted.
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