Variant Fund General Counsel Jake Chervinsky suggested that US regulators could step up prosecutions of crypto companies and toughen enforcement measures against them in September.

Jake Chervinsky explained that for many regulators, the fiscal year ends on September 30, and officials are looking to improve their enforcement records to prepare budget requests. As a result, the U.S. Securities and Exchange Commission (SEC) and the U.S. Commodity Futures Trading Commission (CFTC) may be keeping a closer eye on cryptocurrency companies.

Chervinsky noted that the upcoming US presidential election could have a strong impact on cryptocurrency regulation. Politicians openly express their opinions on crypto assets and promise to support the market, including Republican candidate Donald Trump. Even his rival, Democratic candidate Kamala Harris, has changed her attitude towards cryptocurrencies, becoming more loyal to them. Harris is ready to accept cryptocurrency donations for her election campaign through Coinbase. This could have a positive impact on cryptocurrency regulation in the future, the lawyer believes.

Chervinsky noted a growing trend of regulators agreeing to settle with crypto companies rather than engage in lengthy legal battles. This approach could lead to a large number of small-scale cases being settled, most recently the $175,000 fine Uniswap Labs agreed to pay the CFTC for failing to comply with crypto derivatives trading rules. Chervinsky said regulators could be touting such settlements with crypto companies as victories.

Chervinsky previously criticized the SEC for its numerous threats to sue cryptocurrency services. As the lawyer put it, the regulator prefers to intimidate reputable companies, which violates the law and the mandate of Congress.