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The failure of Gurbir Grewal, Director of the SEC Enforcement Unit, to enforce would be a “betrayal of trust.”
The U.S. Securities and Exchange Commission (SEC) is not on track to take legal action against cryptocurrency companies that violate securities laws, the agency’s chief executive warned Friday.
SEC Enforcement Director Gurbir Grewal was speaking at a conference in Washington, D.C.
The cryptocurrency industry has been frustrated with US securities regulators for the past few years. In particular, they are frustrated by the perception that regulators are moving toward law enforcement regulation. As many say, it’s a prospect that stifles innovation.
But that doesn’t stop the SEC from taking an aggressive approach to enforcing rules it claims apply to cryptocurrency companies, Grewal said at an event hosted by the Practicing Law Institute. .
He warned that the authorities “won’t allow cryptocurrencies,” adding that regulators would take action against law-breakers, regardless of the technology used. Taking a different approach (in this case, not enforcing the rules underpinning the regulatory ecosystem) is akin to a “betrayal of trust,” according to the SEC’s Chief Executive.
The SEC has decided to take the enforcement route despite concerns within the crypto space and is eyeing the unit. 125 new employees to increase its efficiency.
Grewal’s comments come a day after SEC Chairman Gary Gensler said the SEC was keen to register more cryptocurrency companies, especially cryptocurrency brokers and exchanges. Gensler repeated this, saying the SEC has regulators that take enforcement action against securities.
In December 2020, the SEC filed a lawsuit against Ripple Labs.
There are multiple other crypto-related cases filed by agencies. Recently, regulators indicted a former Coinbase staff member for insider trading, listing nine tokens they said were securities (seven of these were on Coinbase).
