The expanded Crypto Assets and Cyber Unit will leverage the agency’s expertise to ensure investors are protected in the crypto markets, with a focus on investigating securities law violations related to:
- Crypto asset offerings;
- Crypto asset exchanges; Crypto asset lending and staking products;
- Decentralized finance (“DeFi”) platforms;
- Non-fungible tokens (“NFTs”); and
This Web3 regulatory awakening should come as no surprise. Given the growing laundry list of perilous Web3 externalities, dangerous Web3 societal costs, and potential systemic and calamitous Web3 financial consequences, the engagement of U.S. financial regulators, especially the SEC, was inevitable. But now what?
This article proposes a multi-faceted SEC Web3 enforcement program focusing on 1) aggressive enforcement, with sweeps, SWAT teams, and the use of expedited and omnibus formal orders; 2) heightened Web3 surveillance; 3) coordinated regulatory cooperation and law enforcement liaison efforts; 4) nationwide educational initiatives; and 5) incentivized self-policing.
‘Enforcement 40’ for 2020
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