Gurbir Grewal, the Enforcement Director of the U.S. Securities and Exchange Commission (SEC), criticized the crypto industry for its lack of compliance during the SEC Speaks event. Grewal addressed the backlash the agency has faced for what some perceive as excessive regulation of the crypto market. He also acknowledged accusations that the SEC is hindering innovation and pushing crypto businesses to seek more favorable regulatory environments overseas. Grewal acknowledged that the crypto industry is looking for a different regulatory framework.
In recent years, the SEC has intensified its efforts to regulate the cryptocurrency sector. The agency successfully brought criminal charges against Terraform Labs and its Founder Do Kwon, Hex Co-Founder Richard Hart, FTX Founder Sam Bankman-Fried, and other executives of the collapsed exchange for fraud. The SEC also accused trading platforms like Genesis, Gemini, Celsius, Nexo, and Kraken of offering unregistered securities through lending programs or digital assets. Kraken agreed to settle the charges by paying a $30 million fine.
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