SEC chief enforcer said at a legal conference in Washington on September 9 that the agency will continue to take strong action against cryptocurrency firms.
“We will continue to pursue proceedings regardless of the technology employed,” Grewal said, adding, “Non-enforcement of the most basic norms supporting our regulatory framework would be a violation of trust.”
Grewal rejected the crypto industry’s claims that the SEC is limiting innovation. His statements follow SEC Chairman Gary Gensler’s speech in which he also dismissed the idea that the securities regulator’s advice was confusing.
Grewal said to The Block on the SEC’s stance, “There is no debate about how we conduct this research. This is the argument you are making: “You may not like the outcome, but there is a lack of transparency on the tests we use and how we evaluate these problems.”
Commissioner Mark Uyeda spoke after Grewal and a panel on SEC enforcement, calling “regulation by enforcement” weaker than the SEC’s approach for regulation and highlighting the worries of crypto market players.
Taken to its logical conclusion, Uyeda argues that “everything, everywhere” constitutes securities fraud. “The commission should refrain from providing new interpretations through enforcement operations,”
In July, Grewal addressed Congress and delivered a message similar to the one he had at today’s conference. A few days later, the SEC filed a complaint against Coinbase workers for insider trading and designated a list of tokens as securities.