The United States Securities and Exchange Commission will expand its regulatory enforcement beyond Coinbase and Binance.US to other cryptocurrency exchanges, intermediaries and decentralized finance (DeFi) entities, David Hirsch said on Tuesday. head of the agency’s crypto assets and cyber unit, during a forum in Chicago.
See related article: US SEC Denied Immediate Access to Binance.US Software
- The SEC is currently investigating other companies that allegedly committed similar violations like Coinbase and Binance.US, Hirsch said during the press conference. Securities Enforcement Forum Center in Chicago.
- “We are going to continue to impose these charges,” Hirsch said, adding that intermediaries such as brokers and clearing agencies that fail to meet their obligations will not escape the regulator’s reach.
- The second for follow-up Coinbase and Binance.US in June, based on accusations that the two major crypto platforms offered unregistered securities, which deprived investors of protection against conflicts of interest and other risks.
- The agency’s long-running legal battle with Ripple Labs also centers on the SEC’s assertion that XRP sales constituted an unregistered offering of investment contracts.
- Hirsch further added that adding a “DeFi” label to a transaction would not help circumvent SEC enforcement.
- As part of the coercive measures taken by the agency against Stoner Cats non-fungible token (NFT) project, SEC Enforcement Director Gurbir Grewal said the “economic reality of supply” determines an offering as a financial security, not its labels.
See related article: SEC Fines Stoner Cats for Selling Securities Not Registered as NFTs