Cryptocurrency-related enforcement actions undertaken by the US securities regulator considerably elevated within the six months following the chapter of cryptocurrency trade FTX.
An evaluation of press releases from the U.S. Securities and Trade Fee (SEC), and information reviews on its actions, discovered that within the six months previous FTX’s collapse, the SEC undertook roughly six enforcement actions.
Within the six months after FTX’s chapter on Nov. 11, 2022, SEC crypto-related enforcement actions jumped to not less than 17, an estimated enhance of 183% from the previous interval.
The evaluation doesn’t account for the 2 latest lawsuits the SEC introduced in opposition to Binance on June 5 and Coinbase a day later.
The elevated actions, together with the latest ones taken in opposition to the 2 exchanges, led to some observers suggesting the SEC is making an attempt to redeem itself for failing to police FTX.
MarketWatch reported that U.S. Consultant French Hill mentioned the latest crackdown was a “cowl your ass” transfer from the regulator and SEC chair Gary Gensler, whereas talking at an occasion in Washington, D.C. on June 7.
Let’s speak crypto. @RepFrenchHill says to Peter Roskam and Heath Shuler that bipartisanship performed an enormous function in drafting stablecoin laws. #BHLegSem23 #BHEvents #Congress pic.twitter.com/D3B60qNgpS
— BakerHostetler (@BakerHostetler) June 7, 2023
Hill claimed that as an alternative of Gensler “overseeing FTX,” the SEC head was as an alternative “out bashing Kim Kardashian as a result of she’s promoted crypto on some Tremendous Bowl advert,” including:
“[Gensler] opened up this yr, in 2023, with all these enforcement actions; I feel it seems to be like [cover your ass] to me.”
Markus Thielen, the pinnacle of analysis and technique at Matrixport, and writer of the ebook Crypto Titans: How trillions had been made and billions misplaced within the cryptocurrency markets, beforehand instructed Cointelegraph he believes there’s an air of “embarrassment” for many who didn’t catch the problems at FTX.
Associated: SEC lawsuits: 67 cryptocurrencies at the moment are seen as securities by the SEC
Ripple CEO Brad Garlinghouse echoed the sentiment, claiming in a June 6 tweet that the SEC is “throwing lawsuits on the wall and hoping they distract from the company’s FTX debacle.”
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