Some crypto companies might be charged with penalties due to certain violations of the securities law. According to AXS crypto news today, there are some crypto firms that have reportedly violated some laws related to crypto securities. Hence, the SEC is on the task to charge these firms with penalties.
Gurbir Grewal, who is the enforcement director at SEC mentioned that the agency wouldn’t really be ignoring the violations and funds related to the securities law for certain crypto companies that come to the department.
The Securities and Exchange Commission of the United States of America has reportedly mentioned that cryptocurrency companies won’t have any amnesty for making a report themselves for certain violations that are related to the securities laws.
A report had been posted on Monday by Gurbir Grewal who is the director of the Enforcement Division in SEC. in the report, it had been mentioned that the agency might view different crypto companies that conduct fair trade more favorably.
However, if the companies tend to reach out and report themselves for the violation of securities law, they might face penalties that are smaller. However, they will definitely not be considered completely off the hook, according to the director.
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Report on SEC’s Action Against Companies that Violate Securities Laws
The report had a few other details such as the goals of SEC towards the crypto companies that violate the laws of security. “Our message to [crypto companies] is not, ‘Register your product and we’ll just ignore the billions you have under management in this crypto lending product and your violations of the securities laws,’” mentioned Grewal.
The Enforcement Director made an arrival into the SEC agency from the Attorney General’s office in New Jersey. He was posted on SEC in the month of July 2021. In November, Grewal made a pretty strong statement regarding the regulation of cryptocurrency.
He also tried to push back the criticism that came forth with the regulation by enforcement rule of SEC with respect to certain crypto as well as securities: “Let me first be clear that we encourage and welcome the use of new technologies for capital formation.
They have the potential to make our markets more efficient and dynamic and to increase access for investors. But — equally importantly — all securities offered or sold to U.S. investors — regardless of their form or name — must comply with the U.S. securities laws.”
The statement that was reported by Grewal actually stands pretty much in contrast to the statement that was made by others. The SEC chair who is Gary Gensler actually has a lot of different points related to the securities laws and the regulation of cryptocurrency for sure.
Grewal’s reported statement seemingly stands in contrast to that of SEC chair Gary Gensler, who has repeatedly asked crypto firms to “come in and talk” — i.e., register their securities with the regulatory body.
Gensler has said that many crypto firms and their products may fall under the regulatory purview of the SEC and need to be registered to ensure investors are protected. However, SEC Commissioner Hester Peirce, known by many in the space as “Crypto Mom,” has previously criticized the agency for its lack of regulatory clarity with respect to crypto firms and possible securities law violations.
The SEC has seemingly stepped up its enforcement actions against crypto firms as the space continues to grow. In August 2021, the agency charged two individuals and a Cayman Islands-based company in a $30 million fraud case involving securities using decentralized finance technology.
According to AXS crypto news today, crypto lending firm BlockFi said it would pay $50 million as part of a settlement with the SEC as well as $50 million in state-level enforcement cases over its alleged failure to register high-yield interest accounts.
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