By Shelly Melancon (Switzerland)
The major regulatory agencies in the United States are banding together to increase their efficiency in arresting and prosecuting individuals and businesses involved in shady cryptocurrency transactions. Attorneys from across the country are now going after those who are breaking the law with regard to digital assets. This coordinated effort aims to reduce crime to a bare minimum while also increasing the safety of individuals, businesses, and the overall economy.
This was announced on October 27 at an American Bar Association event in Miami. The event, a panel discussion, took place during the Association’s annual white-collar crime institute. There, a group of US attorneys discussed their next steps in enforcing cryptocurrency regulations and prosecuting offenders who violate cryptocurrency laws. Officials from the United States Department of Justice (DoJ), Securities and Exchange Commission (SEC), and Commodity Futures Trading Commission (CFTC) participated in the discussion and discussed how their respective agencies will work together to prosecute white-collar criminals.
The Department of Justice’s top priority, according to Nicholas McQuaid, a deputy assistant attorney general, is to prosecute individuals involved in white-collar crimes. He stated that the DoJ would begin using data-driven probes to investigate crypto-related cases. According to McQuaid, the Department of Justice will also establish a new special unit within the FBI to investigate such crypto-related cases.
Also read:One of the major crimes being prosecuted by regulatory agencies is the operation of unregistered or unapproved exchanges, the issuance of unregistered ICOs, and the operation of unapproved lending or rewards systems. Getting individuals and businesses to follow existing rules for the launch of exchanges and programs has been a challenge.
Cases And Regulations Relating To Cryptocurrency In The Recent Past
The SEC forced Coinbase, the largest cryptocurrency exchange in the United States, to abandon its plans to launch Lend, a stablecoin yield program, in September of this year. The SEC had threatened Coinbase with legal action if it went ahead with Lend. The DoJ accused four BItMEX executives of running an illegal derivatives exchange in October 2020.
These are just a few of the numerous regulatory cases being worked on by the agencies. Many people believe that it is best to leave the crypto industry unregulated in order to allow it to grow to its full potential. Many others, however, believe that regulations must be enacted to assure safety and compliance with government standards.
Decentralized finance (DeFi) will see increased activity from US attorneys as they seek to reduce regulatory noncompliance. Despite increased calls for regulation, the SEC recently approved several Bitcoin-ETFs for public trading. More work is needed to ensure that the industry is accepted by the SEC and its sister regulatory agencies in order for growth to occur.
Future collaboration between industry and government is expected to result in the best path for the industry. While additional regulations may not necessarily be aimed at promoting industry growth, they will almost certainly be more stringent in their enforcement. The renewed efforts of the regulatory agencies will surely yield some results in the coming weeks.
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