The enforcement department of the United States Securities and Exchange Commission stated that the commission is set to go after all startups and organizations that offer cryptocurrency-related products and services in the country. However, the report revealed that the commission lacks enough resources to go after the enormous number of crypto platforms that exist in the country presently.
According to the report, despite the recent unfavorable outcomes the US SEC faces from its lawsuits against cryptocurrency firms, the firm has expressed its unrelenting effort to go after crypto entities breaching securities regulations. David Hirsch, the chair of the Crypto Assets and Cyber Unit at SEC, stated the regulator’s intention during the recently concluded Securities Enforcement Forum Central meeting in Chicago.
David Hirsch asserted that even though his department has been actively pursuing crypto firms, he said the agency’s goal of bringing lawbreakers to justice is not limited to big crypto firms alone. He reportedly emphasized this as a reminder given that regulatory matters would be dominant at Benzinga’s conference centered around the future of digital assets, which is scheduled to come on the 14th of November.
Hirsch claimed that the SEC would continue to file lawsuits against crypto firms that mirror Binance and Coinbase in operation, adding that there are several firms the commission is currently preparing to sue. The chair pointed out that the recent challenges it faced in crypto-related lawsuits are insufficient to deter it from continuing its task.
US SEC Plans To Pursue Crypto Firms Violating Its Rules
Furthermore, David Hirsch continued that the regulator would continue to question and probe exchanges, dealers, brokers, and other firms within the crypto industry. Apart from crypto assets, the US regulator is set to venture into regulating the decentralized financial space, too, stating that it would start investigating DeFi firms for security regulation breaches.
In recent months, the United States SEC has adopted more enforcement measures, primarily focusing on identifying and punishing crypto-related firms that they deem violating their rules. However, some giant crypto companies like Coinbase have been witnessed challenging the American securities watchdog in court for its existential threat imposed on them by the lawsuits. This signifies that the trend is changing because, initially, the SEC is consistently winning its cases against crypto firms.
Commenting on the recent development, the former chair for the cyber and crypto assets unit at SEC, Kristina Littman, stated during the program that the US SEC seems to be facing some constraints in carrying out its plans on the crypto industry as it lacks the adequate resources to go after all of them.
Responding to the comment, David Hirsch admitted the limitation that Littman pointed out, considering it a correct observation. He added that there are a vast number of crypto tokens than what the Securities and Exchange Commission or any other financial regulator in the country has the capacities and resources to pursue at a go. Also, he pointed out that there are many centralized exchanges in the country, and most operate without registering with the appropriate quarters.
Philippines SEC Teams Up With US SEC
Meanwhile, the United States SEC and the Asian Development Bank have reportedly joined forces with the Philippines SEC to battle cryptocurrency-related fraud. According to the report, the three entities have formed an alliance to fish out and punish cybercriminals who are using cryptocurrency to execute financial crimes and frauds.
In August, the three regulatory bodies jointly completed an International Organization of Securities Commissions where they all improved and upgraded their skill in scam and fraud prevention through the Investigation and Enforcement Training workshop.
According to Emilio Aquino, the Chairman of the Philippines SEC, the workshop would help their enforcement experts upgrade their capacities and skills in handling investigations on securities-related crimes, such as market manipulation, crypto scams, and insider trading.
The partnership is a massive progress for the Philippines concerning the regulation of the crypto market 8n its region. Previously, the SEC in the Philippines delayed the implementation of its crypto-regulated framework, which was initially supposed to be imposed in late 2022. The agency claimed that it has not yet closed its doors on crypto, however, it is ensuring investors are well protected from the risks of the innovation.