Crypto Complaints Not Deterring SEC Enforcement Approach, Official Says

A senior official reaffirmed the Securities and Exchange Commission’s (SEC) commitment to pursuing wrongdoing in crypto assets, despite widespread criticism of the industry’s level of regulation. 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 ...