Coming at a time when crypto companies are already grappling with global regulations US Securities and Exchange Commission (SEC) The announcement may have frightened cryptocurrency investors even more. According to the information reported by Reuters, the SEC emphasized that in the event of a possible situation, no amnesty will be offered to crypto money companies.
SEC Implicitly Threatens Cryptocurrency Companies
So what exactly does this mean? The decision means that companies or individuals in the cryptocurrency industry will not be forgiven if they want to settle with the regulator if they violate federal securities laws. Although the SEC wants to regulate the crypto money industry, it has been criticized for not fully explaining the regulations, and this situation has been going on for 10 years.
The fact that the SEC will not now grant pardons to crypto money companies as it does to normal financial companies makes the situation even more troubling.
The SEC, which sued Ripple and used the “regulation by litigation” method against Ripple, seems to want crypto money companies to “regulate itself”, with the announcement that it will not be amnesty.
director of the SEC’s legal department. Gurbir S. Grewal In his statement on the subject, he emphasized:
Register your product or company and expect us to ignore the securities laws you violate with the billions of dollars lying under your cryptocurrency lending products. This will not happen.”
The SEC could take the regulations to the next level and increase the pressure in the coming months.