SEC Crypto Chief Warns More Charges Coming to Exchanges and DeFi By CriptoFácil

2023-09-20 00:10:20

© Reuters. SEC Crypto Chief Warns More Charges Coming to Exchanges and DeFi

CriptoFácil – David Hirsch, head of the Cyber ​​and Cryptocurrency Unit at the United States Securities and Exchange Commission (SEC), issued a warning to cryptocurrency exchanges and decentralized finance (DeFi) projects. As the executive stated, new criminal charges similar to those that Binance and Coinbase (NASDAQ:) suffered are on the way.

In his speech during the Securities Enforcement Forum Center held in Chicago, Hirsch revealed that the agency is currently investigating several companies involved in activities similar to those seen at Coinbase and Binance. In other words, trading in assets considered securities without due authorization from the regulator.

In this sense, Hirsch highlighted that industry compliance violations go beyond these two organizations. In addition to Coinbase and Binance, the SEC also has open proceedings against it and its executives over XRP.

“We will continue to make these allegations,” Hirsch said without elaborating.

SEC and cryptocurrencies

According to him, the SEC’s interest in the digital assets sector goes beyond large exchanges. This is because it also extends to intermediaries, distributors and other entities involved with digital assets in the USA without complying with due legal obligations.

“We will continue to be active with intermediaries,” he said. “They can be brokers, traders, exchanges, clearing agencies or any others that operate in this space, are under our jurisdiction and do not fulfill their obligations; whether through registration or failure to provide adequate or complete disclosures.”

According to Hirsch, the decentralized finance sector will also be the heart of SEC actions:

“We will continue to conduct investigations, we will be active in this space, and adding the DeFi label to platforms will not prevent us from continuing our work,” Hirsch added.

On the other hand, he acknowledged that the SEC has a limited role due to its restricted budget.

“There are more tokens out there than the SEC or any agency has the resources to track directly. I think it could be 20,000, 25,000 from what I last read,” she concluded.

By CriptoFácil