Head of SEC Enforcement: Significant Violations in Cryptocurrency Industry

According to The Block, Gurbir Grewal, the head of the SEC Enforcement Division, gave a detailed 15-minute talk on the cryptocurrency industry at a two-day SEC conference hosted by the Practising Law Institute. Grewal stated that over the past decade, the SEC has investigated serious violations in the crypto industry and many creative attempts by market participants to evade SEC jurisdiction. Some claim that the SEC is making things up as they go along, while others believe that the SEC is regulating through enforcement. Grewal emphasized that the Howey Test is the determining factor in whether cryptocurrencies are considered securities, and the SEC’s position has always been clear and consistent, with “no secret analysis.” Grewal also criticized the cryptocurrency industry for its treatment of marginalized communities, stating that cryptocurrencies are the primary financial product that African Americans are more likely to possess than white Americans. He further mentioned that evidence suggests that during the market downturn in recent years, black and brown investors have suffered a higher proportion of harm.