US SEC Executive Says “Cryptocurrency Companies Tend To Lose Compliance”

SEC Executives Discuss Recent Enforcement Actions

U.S. Securities and Exchange Commission (SEC) Executive Director Gurbil Grewal speaks at an event hosted by Rutgers Law School and others in New York on the 16th. He spoke about recent enforcement actions against cryptocurrency companies.

The SEC has approached regulation cautiously, but said it had to “change its strategy” as the crypto industry tends to continue to operate without considering compliance.

The SEC has recently accelerated its enforcement actions, including filing lawsuits against Coinbase and Binance, arguing that the reason for this is that cryptocurrency companies do not comply with the law.

There are also voices of criticism from inside and outside the SEC that it is cracking down on compulsory measures before providing clear guidelines and implementing “regulation by compulsory enforcement.”

Grewal called these criticisms “a catchy but overused phrase used by cryptocurrency market participants and lobbyists.”

The cryptocurrency industry has been calling for clarification of regulations in the U.S., but Grewal responded by saying, “Even if you come up with bespoke rules, the spirit of the industry as a whole is It’s built around non-compliance,” he said.

It seems that he is questioning the effectiveness of the regulation.

Cooperation with overseas institutions

Grewal said that while the SEC may appear to be cracking down on the crypto industry, it is because the crypto market is sluggish and the risks are increasing. He says he’s just doing business as usual to manage the risks.

“We will expand our jurisdiction as far as the law allows,” Grewal said.

It seems that by entering into mutual agreements with overseas regulatory bodies, it is also meant to prevent some countries or regions from becoming regulatory loopholes.

Grewal also took a negative view of DeFi (decentralized finance). DeFi is not decentralized, it is not a financial service, it is rather fraudulent.

Lawsuit by Coinbase

While Coinbase is being sued by the SEC, it has also filed a limited lawsuit against the SEC seeking a response to a regulatory petition.

In July 2022, Coinbase filed a petition with the SEC asking them to “develop a viable regulatory framework,” but after nine months had not received a response, they sued the SEC in April. there is

The appeals court ordered the SEC to respond within a week, which the SEC has just refused.

Coinbase notes that the SEC’s stance on the crypto industry has hardened, especially after the FTX bankruptcy.

connectionUS SEC refuses to respond to Coinbase regulatory petition

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