The U.S. Securities and Exchange Commission (SEC) has taken steps to regulate three different cryptocurrency projects.
The SEC made a series of moves in March to reign in several crypto-focused projects. On March 22, Coinbase, the popular cryptocurrency exchange, got a Wells notice from the regulator. The notice suggested that the SEC would be taking action against Coinbase for its trading platform, wallet, staking, and institutional services.
Coinbase maintained that its services are offered in a completely legal fashion. Executives also suggested that the firm was prepared to take the SEC to court should any charges be filed. Very few companies have gone this route against the SEC, with Ripple being the most notable example.
The SEC also filed charges against Justin Sun, the former CEO of TRON, and his various companies over the sale of two tokens. The sale of both TRX and BTT tokens were deemed unregistered security offerings and the SEC also alleged that the parties had manipulated prices via wash trading.
Two celebrities were also targeted by the regulator for promoting the tokens without disclosing that they were paid promoters. These two celebrities did not settle and are now named in the SEC’s lawsuit alongside Sun and his companies.
On March 21, the SEC issued a subpoena to the DeFi trading platform SushiSwap. Its “head chef,” Jared Grey, also received a subpoena from the regulator. Although the details of the subpoena are unknown, the project has proposed a legal defense fund of up to $5 million to protect against any potential charges.
The SEC has taken multiple other actions against cryptocurrency companies in recent months. In January and February, the regulator targeted firms such as Nexo, Genesis, Gemini, Coindeal, and Kraken, among others.
It is highly likely that the SEC will continue to take action against crypto companies in the coming months, as it is currently the regulator with the most authority in the industry.
Disclaimer: information contained herein is provided without considering your personal circumstances, therefore should not be construed as financial advice, investment recommendation or an offer of, or solicitation for, any transactions in cryptocurrencies.