Is SEC Planning More Crypto Crackdowns In September? Legal Officer Warns

This month may witness a higher activity of the United States Securities and Exchange Commission (SEC) and other regulators in enforcing existing rules. Jake Chervinsky also pointed out that the activity of the SEC and CFTC might rise by this month. 

This is so because most of the regulators usually operate under the fiscal year, which runs to September 30. The enthusiasts in the crypto area await a clear and comprehensive legal framework that would govern the industry.

Jake Chervinsky, the Chief Legal Officer of VariantFund had insinuated the possibility of the market seeing even more SEC enforcement actions towards the end of September. U.S executive criticism did not deter the regulators from maintaining their ‘bottleneck’ strategy on the”. This they have claimed is actions that hamper innovation in the market together with low sentiments among the stakeholders.

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SEC Could up the Crypto Regulation

Jake Chervinsky observed that there is the possibility of higher enforcement actions this month in the market. He noted that almost all the regulatory agencies such as the SEC, and Commodity Futures Trading Commission (CFTC) will close their fiscal year on September 30. The impact of this is that different teams seek to enhance enforcement actions to enhance performance reports before the next budget requests.

“Just a reminder that the SEC, CFTC and other regulators end their fiscal year on September 30 so they tend to increase the pace of enforcement actions in September in support of their performance reports and budget with Congress It may be an active month this September.

This might seem the case as regulators pride themselves on escalating actions and tallying victories or at least cases pending court determination. However, some crypto users disagree with this thinking arguing that with it the opposite might be true and the SEC is seeking out-of-court victories and settlements.

The CFTC has fined decentralized crypto exchange Uniswap a $175,000 settlement fine for unlawful trading in digital assets derivatives.

Some Signs Of The Road To Clear Rules

While the US SEC and CFTC increase reporting activity, the blockchain community demands legal certainty in the United States. The want for clear rules stated by the argument is to enhance the creation and the interest in the new markets.

Many critics feel that the coming elections were the turning point since candidates from both parties started approaching the sectors. On one hand, there is Trump who has turned pro-Bitcoin boosting sentiments. In contrast, his opponent’s unknown crypto stance, Kamala Harris’s campaign benefited from Coinbase crypto donations.