Follow us on TWITTER HERE


There Are Benefits to Self-Reporting Violations and Working With Us – Regulation Bitcoin News


The U.S. Securities and Exchange Commission (SEC) has revealed that there are benefits for cryptocurrency companies to self-report their violations of securities laws to the regulator. While noting that there will be no amnesty, the SEC enforcement director said, “We’ll view their conduct more favorably if they come in — such as what the remedies will look like.”

No Amnesty for Crypto Firms

Cryptocurrency companies that self-report violations of security laws to the U.S. Securities and Exchange Commission (SEC) cannot expect amnesty but there are some benefits, Gurbir Grewal, the agency’s enforcement director, told Reuters Monday.

The director elaborated:

Our message to them is not, ‘Register your product and we’ll just ignore the billions you have under management in this crypto lending product and your violations of the securities laws.’

SEC Chairman Gary Gensler has repeatedly urged companies in the crypto space to come in and discuss their products with the SEC to bring them under the securities laws.

Follow us on TWITTER HERE


However, some crypto companies have voiced concerns that the rules are unclear.

The Nasdaq-listed cryptocurrency exchange Coinbase, for example, brought their lending product to the SEC last year. However, the SEC threatened to sue the exchange if it proceeded with the launch. Coinbase subsequently shelved its product. The exchange said at the time: “We don’t know why … We got no explanation from the SEC.”

Earlier this month, the SEC “charged Blockfi Lending LLC with failing to register the offers and sales of its retail crypto lending product, Blockfi Interest Accounts (BIAs).” The agency called it a first-of-its-kind action. Blockfi agreed to pay $100 million to settle the charges with the SEC and state regulators.

The SEC director of enforcement added:

Our message is that we’ll view their conduct more favorably if they come in — such as what the remedies will look like, including penalties, and finding a path to complying with the securities laws. That’s the benefit entities get from self-reporting violations and working with us.

Chair Gensler has named cryptocurrency regulation a priority for the SEC. He often stressed the need to put in place “basic investor protection.” He believes that many cryptocurrency exchanges are offering unregistered securities.

Do you think the SEC should offer amnesty to crypto companies that come forward and report their own violations? Let us know in the comments section below.

Kevin Helms

A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

More Popular News

In Case You Missed It

Source link

Follow us on TWITTER HERE

You might also like
Leave A Reply

Your email address will not be published.