Categories: U.S. Regulation

SEC Enforcement Chief Grewal Addresses Crypto Compliance Concerns

During a recent “SEC Speaks” event, Gurbir Grewal, the Director of the Securities and Exchange Commission’s Division of Enforcement, expressed concerns regarding the compliance practices within the cryptocy industry.

Grewal’s remarks, spanning approximately 15 minutes, shed light on the challenges and criticisms faced by the regulatory body in enforcing crypto regulations. Grewal emphasized the crypto sector’s attempts to sidestep SEC jurisdiction, highlighting a decade-long struggle with noncompliance issues. He refuted claims of arbitrary regulatory actions by the SEC, asserting that the agency operates within its established legal boundaries. 

The Howey Test remains the standard for determining whether a crypto asset qualifies as a security, dismissing industry suggestions for alternative criteria.

The SEC official also delved into the industry’s impact on marginalized communities, critiquing the so-called “predatory inclusion” strategies aimed at these groups.

Despite narratives promoting financial inclusion through cryptocy, Grewal pointed to evidence suggesting disproportionate harm to Black and Brown investors during market downturns.

Terron Gold

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