David Hirsch, who leads the SEC’s Crypto Assets and Cyber Unit, has stated that the SEC is continuing its efforts to investigate and take action against crypto exchanges and DeFi projects that it believes are breaking the rules regarding securities, just like it did with Coinbase Inc. and Binance.
The enforcement office, which has been handling legal cases unusually quickly for the SEC, knows about and is looking into other companies that are doing similar things to what the two major platforms did.
Hirsch mentioned on Tuesday at the Securities Enforcement Forum Central in Chicago that violations of industry rules are not limited to just these two companies; they are investigating other firms as well that are involved in such activities.
Hirsch said in a statement, “We’re going to continue to be active as intermediaries.”
He added, “That can be brokers, dealers, exchanges, clearing agencies or any others who are active in this space, are within our jurisdiction and not meeting their obligations, either through registration or failure to provide adequate or complete disclosures.”
Hirsch noted that DeFi projects will also be subjected to scrutiny by the enforcement division.
He added, “We’re going to continue to conduct investigations, we’re gonna be active in the space, and adding the label of DeFi is not going to be something that’s going to deter us from continuing our work.”
“We do have a lot of litigation going on,” Hirsch admitted.
While the SEC is showing interest in regulating the cryptocurrency industry, Hirsch recognized that the SEC has its limitations when it comes to enforcing these regulations.
He pointed out that there are currently 25,000 different tokens and numerous cryptocurrency exchanges in existence. He admitted that there are more active projects in the crypto space than the SEC or any other government agency can effectively oversee due to their limited resources.