SEC rules out amnesty for crypto firms

SEC will not offer amnesty to crypto companies that voluntarily disclose violations of securities laws. Reuters reported this, citing its enforcement chief Gurbir Grewal.

The agency noted that industry participants had expected no penalties for companies that voluntarily come under the regulator’s oversight.

Our message is not: “Register your product, and we will simply turn a blind eye to multi-billion-dollar sums under the management of your crypto-lending programs and violations of the law.” If a company takes the initiative to register its product, we will show leniency. For example, in matters of penalties and finding a path to compliance, — the official said.

Earlier, in September 2021 the SEC warned the Coinbase bitcoin exchange about possible legal action in the event of launching crypto-savings accounts based on USD Coin (USDC). Subsequently the company abandoned its plans.

In July 2021 BlockFi faced state-level regulatory scrutiny. In November, Bloomberg reported that the SEC had initiated an investigation into the firm. In February 2022 it emerged that BlockFi would pay $100 million in fines as part of a settlement.

Following the crypto-lending platform’s announcement to register products with the Commission, its competitor Nexo took the same step.

Earlier media reports reported a SEC investigation into providers of lending services Voyager, Gemini and Celsius Network. The regulator is allegedly examining the legality of offering yields on deposits in digital assets.

Subscribe to ForkLog’s channel on YouTube!