The US Securities and Exchange Commission (SEC) has warned that more charges are coming to exchanges and DeFi.
The SEC this week declared that it will continue pursuing potential violations by crypto exchanges and DeFi projects. This statement comes after the agency sued Coinbase and Binance earlier this summer on the grounds of operating unlawfully.
While the agency’s current litigation load is heavy, David Hirsch, head of the crypto assets and cyber unit, asserted that the agency has no plans to stop going after exchanges and DeFi projects it sees as violating securities laws and is actively investigating other firms involved in similar activities to Coinbase and Binance.
“We're going to continue to be active as to intermediaries. 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 stated at the Securities Enforcement Forum Central on Tuesday.
As the SEC continues to investigate, Binance’s CSO Patrick Hillmann has lamented the strict regulatory environment in the US and Coinbase have entertained the idea of moving their headquarters out of the US over frustrations with the regulatory regime.