The head of the SEC’s enforcement department said that crypto companies will not receive amnesty for reporting violations of the securities law, but they will receive a reduced sentence.
U.S. Securities and Exchange Commission (SEC) Enforcement Director Gurbir S. Grewal said that if crypto companies are the first to report violations of the securities law, the SEC will consider it extenuating circumstances. While companies may face lower fines, they will not be completely exempt from liability.
“Even if you decide to register your product, we will not just ignore the billions you illegally earned from this cryptocurrency lending product and your securities law violations,” he said.
Gruel moved to the SEC from the New Jersey Attorney General’s Office in July 2021. In November, he spoke out against criticism of the Commission’s work aimed at “enforcement regulation” of cryptocurrencies and traditional securities.
“We encourage and welcome the use of new technologies for capital accumulation. They have the potential to make our markets more efficient and dynamic and to increase access for investors. But, just as important, all securities offered or sold to US investors, regardless of their form or name, must comply with US securities laws,” Gruell said.
Recall that at the end of last year, SEC Chairman Gary Gensler called on cryptocurrency companies to interact with the Commission and register with the supervisory authority products that have the properties of securities. Earlier, SEC Commissioner Hester Peirce has already criticized the agency for its lack of clarity regarding the regulation of cryptocurrency companies and possible violations of securities law.
Source: Bits
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