As we have seen over the last few months, crypto exchanges are under close scrutiny everywhere. The Chief for crypto enforcement at the SEC has warned that they will prosecute more exchanges soon. The regulator believes that, alongside Coinbase and Binance, many other exchanges operate illegally. They cannot go after everything at once, so the new charges will come with time.
David Hirsch is the Chief of this department of the SEC. The current regulator says they have a full-on workload right now. This has involved the prosecution of multiple crypto firms at once. It is currently identifying and investigating other crypto firms that it might be able to prosecute in the future. Multiple crypto exchanges are not in the public eye worth going after. It also goes beyond just exchanges and includes intermediary firms. This could be dealers, brokers, or a number of other types of firms. Firms operating with decentralised finance will not be safe either.
The Fast Process for The Regulators at The SEC
The SEC regulator is usually slower and calmer with these sorts of processes. It usually targets firms that are already under regulation and may have been misconducting in several ways. This usually means large businesses on Wall Street who have the legal knowledge to settle things quickly. When it comes to crypto, however, such an approach may not be enough. These are often not under regulation. The types of charges the SEC brings against these companies may eliminate them. Therefore, their response is more aggressive, and charges often go to court.
Due to financial and time constraints, there is only so much the regulators at the SEC can do at once. There are a possible 20,000 to 25,000 crypto tokens that they could possibly go after. It is, therefore, understandable why their workload is so full right now. This could give crypto trading platforms time to prepare their defence.