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SEC Chairman Gary Gensler Cited Enforcement Actions Against Crypto Firms

Major enforcement efforts against crypto businesses, according to US Securities and Exchange Commission Chair Gary Gensler, are part of the “economic realities” of securities regulation.

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On November 2, Gensler referenced instances of SEC enforcement against crypto lending startup BlockFi and a former Coinbase employee to explain the agency’s actions on violations of U.S. securities laws in prepared remarks at the Practising Law Institute’s Annual Institute on Securities Regulation.

The SEC would use a treat like cases alike approach to enforcement proceedings under Gary Gensler, regardless of the kind of securities, funds, or investors.

“If you fail to register a security as required, or to register appropriately as an investment company, you violate the securities laws, regardless of the ‘form’ or ‘name’ of the securities involved,” Gensler said.

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Cases against Allianz Global Investors, Archegos Capital Management, and Infinity Q Capital Management were also noted by Gensler. The SEC charged the firms, as well as several of their officials, with conducting fraudulent schemes.

During his remarks, which went beyond crypto, Gary Gensler asked firms that have breached the commission’s regulations to cooperate with the commission’s investigations.

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During the fiscal year that ended September 30, the SEC filed more than 700 actions, according to Gensler. The government acquired judgments and orders totaling $6.4 billion, including $4 billion in civil penalties.

“If you mess up, and people do mess up sometimes, come in and talk to us, cooperate with our investigation, and remediate your misconduct,” according to the SEC chairman.

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Harold

CoinCu News

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.