SEC Enforcement Director Calls for Tighter Crypto Regulation

Gurbir S. Grewal, director of the U.S. SEC's enforcement division, discussed cryptocurrency regulation at a seminar for the William and Mary College School of Business Law Review earlier this month, where he emphasized the need to enforce federal securities laws in the evolving crypto market. Grewal noted that the principled definition of securities in the 1946 Supreme Court case SEC v. Howey still applies to new investment schemes, including crypto assets. Grewal pointed out the significant investor losses caused by fraudulent crypto activities and emphasized the urgent need to address these harms, mentioning multiple charges against issuers for unregistered and fraudulent offerings. Grewal said that innovation and compliance with securities laws are not mutually exclusive, and securities regulators are committed to working with cryptocurrency entrepreneurs to ensure compliance while promoting technological progress. Finally, he emphasized the need for strong enforcement to maintain public trust, protect investors, and enhance confidence in financial markets by holding wrongdoers accountable and fostering a culture of compliance. (Bitcoin.com)