The latest crypto events necessarily force the SEC to take drastic measures. Especially since these events have claimed many victims (institutions, investors and users included). The latest measures put in place specifically target large crypto firms. Some would even call them big SEC roundups. And according to a former project director of this body, this regulatory assault on crypto companies has only just begun.
SEC already on the lawsuit of two renowned cryptocurrency companies
The SEC is widely known for its strict regulations. The body is currently pursuing legal action against Genesis and Gemini, two high-profile crypto companies. Second the explanations by John Reed Strak, former head of the SEC, allegedly illegally raised billions of dollars from thousands of investors.
Through “Gemini Earn”, Genesis offers Gemini customers the possibility to lend their own crypto. This system allows customers to lend their assets in exchange for interest. By law and the SEC, this constitutes an unregistered offering of securities. Which explains the lawsuit against this crypto company.
BlockFi, another SEC target
You must know that the regulatory measures of the SEC have been in force since last year. The BlockFi crypto lending platform is proof of that. In February 2022, the SEC sued BlockFi. The reason: He did not register his assets in accordance with the Investment Companies Act of 1940. The verdict is such that BlockFi will have to pay $100 million to regularize its situation.
The SEC is there to monitor the enforcement of enforcement actions taken by the securities regulator against crypto firms. Many, however, consider this body’s latest actions against the means to wipe out cryptocurrencies. The question that arises is: measures implemented by the SEC is really effective in protecting investors.
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My name is Ariela and I’m 31 years old. I have been working in the field of web writing for the past 7 years. I only discovered trading and cryptocurrencies a few years ago. But it is a universe that interests me very much. And the topics covered within the platform allow me to learn more. A singer in my free time, I also cultivate a great passion for music and reading (and animals!)