The SEC recently shed light on the practices of the crypto industry. Gurbir Grewal, the director of the SEC's enforcement division, has been an outspoken critic of creative attempts and lapses in crypto regulation.
SEC lifts lid on crypto non-compliance
In revealing speech at SEC Speaks, Grewal highlights significant non-compliance within the crypto industry. Above all, it highlights the efforts made by certain players in the crypto market to dodge the regulations in force.
“This attitude has led to risky investments and crypto market instability. The security of investors is also compromised”he explained.
The SEC therefore emphasizes the need for responsible crypto innovation that respects established financial frameworks. According to the US crypto regulator, the exchange of digital assets must be transparent. Also, it is important to issue tokens in accordance with current laws.
The Howey test, a determining criterion for classifying a cryptocurrency as a security
When SEC SpeaksGrewal reaffirmed the importance of the Howey test for:
- maintain order in the cryptocurrency market,
- protect crypto investments.
The Director of Enforcement at the SEC warns against unregulated ICOs. These often promise innovation and wealth without guaranteeing the necessary security.
“Blockchain, although revolutionary, must be integrated into the existing regulatory framework to ensure sustainable finance. »
At the same time, Grewal emphasizes an important point: investments in crypto assets must not be a source of exclusion or harm. Blockchain and cryptocurrencies must be accessible and beneficial for everyone.
In any case, Grewal's statement recalls two facts:
- resolving the SEC-crypto industry standoff will take time;
- cryptocurrency still faces significant regulatory challenges.
The future of the crypto industry will depend on its ability to comply with the rules and promote authentic financial inclusion.
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