The U.S. Securities and Exchange Commission (SEC) is actively targeting cryptocurrency platforms and decentralized finance (DeFi) entities that it believes are violating securities regulations, similar to the actions taken against Coinbase Global Inc. (NASDAQ:COIN) and Binance, according to David Hirsch, the leader of the SEC’s Crypto Assets and Cyber Unit.
Speaking at the Securities Enforcement Forum Central in Chicago, Hirsch emphasized that the SEC’s concerns extend beyond just the major exchanges.
This serves as a timely reminder, especially with the upcoming Benzinga’s Future of Digital Assets conference, where regulatory matters in the industry are expected to be discussed.
Hirsch stated, “We’re going to continue to bring those charges,” pointing out that several other firms with operations similar to Coinbase and Binance are under the SEC’s scrutiny.
Despite facing challenges in some crypto-related cases, the SEC remains determined.
Hirsch added, “We’re going to continue to be active as to intermediaries,” referring to brokers, dealers, exchanges, and other entities in the crypto domain.
He also highlighted the existence of numerous centralized platforms that might be operating as unregistered exchanges.
Historically, the SEC has taken a measured approach to enforcement, primarily targeting violations at regulated entities. However, with digital asset companies challenging the SEC in court due to the potential impact of charges, the dynamics are shifting.
A. Kristina Littman, the moderator of the event and Hirsch’s predecessor at the SEC, mentioned the apparent strain on the SEC’s resources.
Hirsch acknowledged the limitations, stating that there are more tokens in existence than the SEC or any agency can directly pursue.
He also mentioned the presence of centralized platforms that may be functioning as unregistered exchanges.
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