The US Securities and Exchange Commission (SEC) has issued a warning regarding the prospect of additional charges against exchanges and DeFi projects. This announcement follows the agency’s recent legal actions against Coinbase and Binance, which were accused of operating illegally.
Despite managing a significant caseload, David Hirsch, head of the crypto assets and cyber unit, indicated that the SEC remains committed to pursuing exchanges and DeFi projects it views as non-compliant with securities laws. The agency is actively investigating other firms that engage in activities similar to those of Coinbase and Binance.
Hirsch emphasized, “We’re going to continue to be active regarding intermediaries. This includes brokers, dealers, exchanges, clearing agencies, or any entities active in this space that fall within our jurisdiction and are not fulfilling their obligations, whether through registration or inadequate disclosures,” during his remarks at the Securities Enforcement Forum Central.
As the SEC’s investigations continue, Binance’s Chief Security Officer Patrick Hillmann has expressed concerns about the challenging regulatory landscape in the US. Additionally, Coinbase has considered relocating its headquarters outside of the US due to frustrations with the current regulatory climate.