Op-ed: What the crypto industry must do to survive the wrath of the SEC

Sep. 19, 2023

By Kadan Stadelmann

SEC lays down the law for crypto, raising debates on the industry's future sustainability.

The Securities and Exchange Commission (SEC) has been keeping a watchful eye on the cryptocurrency industry, raising concerns about its lack of regulation. The agency has made it clear that it views many cryptocurrencies as securities and, therefore subject to federal securities laws. This stance has led to increased scrutiny and enforcement actions against companies involved in initial coin offerings (ICOs) that the SEC deems as unregistered securities offerings, as well as a general thaw over the U.S.-based crypto industry.

The SEC’s tough stance on crypto has sparked debate about whether the agency’s actions will ultimately destroy the cryptocurrency industry or pave the way for a more regulated and stable market. As cryptocurrency continues to gain popularity, it remains uncertain how this regulatory landscape will evolve in the coming years.

SEC Actions Against Crypto Companies

The SEC’s recent actions against crypto companies have sparked concerns among the crypto community about the agency’s intentions towards the industry. In 2018, the SEC launched a crackdown on ICOs, which resulted in numerous companies being fined or shut down. The agency also filed lawsuits against several high-profile ICOs, including Telegram and Kik, alleging that their tokens were unregistered securities.

More recently, the SEC has targeted decentralized finance (DeFi) platforms and cryptocurrency exchanges for not complying with regulations. These actions leave one wondering if the SEC is trying to stifle innovation in the crypto space rather than simply enforcing existing laws to protect investors from fraud and scams.

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