Gurbir Grewal, head of the enforcement department of the U.S. Securities and Exchange Commission (SEC), discarded accusations of the regulatory hit on cryptocurrency exchanges on Friday and accused businesses for breaking securities rules. He said that the cryptocurrency sector as a whole was “built around noncompliance.”
A Well-Thought Crackdown on Crypto
As per Reuters report, Grewal spoke at a Rutgers University and Lowenstein Sandler LLP event in New York. According to the SEC’s enforcement director, while the commission had “thoughtfully and incrementally” engaged on measures regarding the cryptocurrency industry, the effort ended up unable to address what the agency considers unregistered securities is.
Crypto Firms Fail to Comply with SEC
Grewal noted: “Even if you came up with a bespoke rule set, you have an entire industry where the ethos is built around noncompliance,” he added: “Typically, you’d also see compliance, but we’re not seeing that in this space, so we had to change strategies.”
Actions Against Coinbase and Binance
The news comes amid commotions due to the ongoing litigations involving cryptocurrency exchanges like Coinbase and Binance against the U.S. Securities and Exchange Commission (SEC).
A former SEC official, John Reed Stark has recently offered a viewpoint on how the case may conclude as discussions regarding a potential settlement between the parties heat up following Judge Jackson’s decision to decline the SEC’s request to freeze the assets of Binance’s US arm. According to Stark, the Binance-SEC agreement may be filed with the court as a “Consent Order”.
Settlement Between Binance.US and the SEC
Interestingly, if a settlement is made, it may result in a variety of results. It might include Binance consenting to register its product offerings with the SEC and putting in place strengthened compliance controls to guarantee compliance with US securities regulations.
It is important to note that Binance.US recently announced a short-term suspension of USD deposits amid speculations that its bank partners were considering pausing dollar payments in the following week.