David Hirsch, head of the Cryptocurrency Assets and Cyber Unit of the US Securities and Exchange Commission (SEC), issued a stern warning to cryptocurrency exchanges and decentralized finance (DeFi) projects.
He noted that similar to the Coinbase and Binance cases, more criminal charges are imminent for those who violate securities laws.
Speaking at the Securities Enforcement Forum Center in Chicago, Hirsch revealed that the agency is currently investigating several firms engaging in activities similar to those seen at Coinbase and Binance. He emphasized that the industry's compliance violations go beyond these two organizations.
“We will continue to make these accusations,” Hirsch said, adding that there are other businesses on the SEC's radar that operate similarly to Coinbase and Binance.
Hirsch also underlined that the SEC's interest in cryptocurrencies extends beyond major exchanges. “We will continue to be active regarding intermediaries,” he said. This includes intermediaries, distributors, exchanges, stock exchange institutions or other persons operating in this field who fail to fulfill their obligations.
According to the official, the institution's interest will also include DeFi projects. “We will continue to conduct investigations, we will be active in this space, and adding the DeFi label to platforms will not deter us from continuing our work,” Hirsch added.
However, Hirsch also acknowledged the limits of the SEC's greater enforcement capacity. The SEC, which has a limited budget that is generally pale in comparison to the financial giants it is up against, also has limited resources. Hirsch agreed, saying, “Yes, we have quite a few cases ongoing.”
“There are more tokens out there than the SEC or any agency has the resources to track directly – I think it could be 20,000, 25,000 from what I last read.”
*This is not investment advice.
