Lawyer predicts even worse to come from SEC

The growing popularity of the crypto market and the services provided by exchanges to deal with the global economic crisis have attracted the attention of government agencies around the world. As a result, regulatory actions and concerns have increased alongside the growth of the crypto industry.

The U.S. Securities and Exchange Commission (SEC) has stepped up its regulatory action on the crypto industry, with a recent focus on exchanges under its jurisdiction that offer crypto-related “securities”. As a result, legal experts anticipate even tougher actions from the SEC.

Hard road ahead for the crypto industry

According For Jesse Hynes, a pro-crypto lawyer, many believe the crypto crackdown is here, and while the worst hasn’t happened yet, Hynes believes it is imminent. However, Hynes argues that this will ultimately benefit investors.

Hyne’s statement highlights the “deceptive” marketing practices that some crypto companies engage in to attract investors. The use of phrases such as “clean”, “earning” and “decentralized” are common “tools” used by these companies to create a sense of investment opportunity and community involvement.

However, Hynes points out that these “marketing tools” can be misleading, as they often don’t accurately reflect the true nature of the business or its operations. He further claims:

The answer is to protect these investors by giving them legal rights, entitlements and protections as a result of their purchases. It happens. I think many crypto and NFT projects will be deemed to have raised funds as security.

Jesse Hynes’ statement further clarifies that he is not implying that all non-fungible tokens (NFTs) or cryptocurrencies are securities, as the SEC has asserted on various occasions. Instead, he points out that many were “wrapped up” and sold as part of a fundraising security offering.

Moreover, Hynes argues that the regulatory system is “messy and backward,” which is ineffective in targeting the worst players in the industry. Instead, he suggests that the industry’s most famous actors are more likely to be targeted first.

This may be because they are more visible and “easier” to regulate or because they have a higher public profile and are therefore more likely to attract the attention of regulators in the United States. United. He concluded :

Ultimately, I believe we will end up where we were meant to be – investor protection. Honestly, the process to get there will suck and be slow.

SEC steps up crypto crackdown with additional prosecutors

The Securities and Exchange Commission is facing multiple legal battles in the crypto industry, including the XRP lawsuit and claims of Binance.US operating an “unregistered stock exchange”. The regulatory body is would have prepares to bolster its execution capabilities with new hires.

These developments signal a potential escalation of the SEC’s efforts to regulate the crypto industry and enforce securities laws. However, it is well known that the SEC has been facing criticism from the US Senate since October 2022.

For this, the SEC was confronted critical and challenges from various fronts in the crypto industry. This includes Senate allegations that SEC Chairman Gary Gensler overstepped his authority and took a hostile stance toward the industry. As a result, the SEC has been experiencing a staff exodus since mid-2022.

Nevertheless, a clear regulatory framework is essential for the good of the crypto industry, which would lead to new innovations and growth for the nascent sector, which offers possibilities and different services to its customers to withstand financial crises. current and future.

BTC with sideways price action on the 1-day chart. Source: BTCUSDT on

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