In a stern message to the crypto industry, David Hirsch, the United States SEC crypto enforcement chief, has issued a warning that more punishment and charges are imminent.
Hirsch’s declaration comes as the Securities and Exchange Commission grapples with a slew of pressing issues, but he made it abundantly clear that the regulatory body has not yet exhausted its arsenal when it comes to the crypto space.
Speaking at the Securities Enforcement Forum Central in Chicago, Hirsch unveiled the SEC’s forthcoming strategy. He emphasized that the agency is poised to bring forth new charges against various players in the crypto arena, including crypto exchanges, brokers, dealers, and others who fail to comply with proper disclosures or registration requirements. Hirsch’s message was clear: compliance is non-negotiable in the regulator’s eyes.
A Widespread Net: New Crypto Charges Loom
The agency’s heightened scrutiny is not limited to a few bad actors. Hirsch confirmed that the SEC is actively investigating firms engaged in activities akin to those that recently led to legal actions against industry giants, Binance and Coinbase.
“We’re going to continue to bring those charges,” Hirsch asserted. This declaration leaves no room for ambiguity—the SEC is steadfast in its mission to hold the crypto industry accountable.
Moreover, Hirsch highlighted that the commission is not exclusively targeting industry leaders. Rather, the agency’s crosshairs are trained on the entire crypto landscape, signaling a comprehensive and unrelenting crackdown.
Cryptocurrencies tallied a market cap of $1.05 trillion today: TradingView.com
SEC: DeFi Under The Lens
Hirsch’s stern message did not stop at crypto exchanges; it extended to decentralized finance (De-Fi) projects as well. He confirmed that the investigative efforts will extend to the De-Fi sector, underlining the agency’s commitment to thorough scrutiny.
“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,” Hirsch affirmed.
This announcement comes at a time when De-Fi has been garnering substantial attention for its rapid growth and innovative financial products. The SEC’s increased vigilance in this area indicates a determination to ensure that even the most innovative corners of the crypto world adhere to regulatory standards.
Hirsch’s warning serves as a resounding wake-up call to the crypto industry. The SEC’s crypto enforcement chief has made it clear that the agency is not retreating but rather intensifying its efforts to safeguard investors and maintain the integrity of the financial markets. As the crypto landscape evolves, market participants can expect the SEC to remain a vigilant guardian of compliance and accountability.
Featured image from Whip Cracking Enthusiasts