SEC’s Grewal criticizes crypto industry’s ‘noncompliance’

U.S. SEC Enforcement Director Gurbir Grewal condemned the crypto industry for its “significant lack of compliance.”

During the SEC Speaks event, Grewal responded to criticism leveled at the agency over excessive SEC crypto regulation.

“We have confronted significant non-compliance and many, many creative attempts by market participants to avoid our jurisdiction, with some claiming that we are making it up as we go or regulating by enforcement, and others arguing that we are recklessly exceeding our authorities.”

Gurbir Grewal, SEC Enforcement Director

Grewal also pointed out that the SEC has been accused of stifling innovation and pushing crypto businesses to more favorable foreign jurisdictions. At the same time, he noted that the crypto industry wants a different set of rules.

“The “predatory inclusion” tactics that certain crypto entities are directing at Black, brown, and other marginalized communities are extremely troubling.”

Gurbir Grewal, SEC Enforcement Director

In recent years, the SEC has stepped up efforts to regulate the cryptocurrency industry. Over the past year, the regulator succeeded in opening criminal cases for fraud against Terraform Labs and its Founder Do Kwon, Hex Co-Founder Richard Hart, FTX Founder Sam Bankman-Fried, and other leaders of the collapsed exchange.

The agency also charged trading platforms Genesis and Gemini, Celsius, Nexo, and Kraken with offering unregistered securities through lending programs or offering digital assets. Kraken agreed to settle the claims by paying $30 million in fines.