Chief Crypto Officer of the SEC says “New Charges Are Coming for Crypto Exchanges and DeFi”

The SEC’s cryptocurrency division director has hinted at additional allegations against the sector.

David Hirsch, who is in charge of the US Securities and Exchange Commission’s (SEC) Cryptocurrency Assets and Cyber Unit, gave an urgent alert to cryptocurrency platforms and decentralized finance (DeFi) initiatives.

He said that similar criminal penalties for violators of securities rules as seen in the Coinbase and Binance instances are on the horizon.

Hirsch made the announcement at the Securities Enforcement Forum Center in Chicago, where he spoke about the agency’s investigation of many companies involved in practices similar to those witnessed at Coinbase and Binance. He stressed that other companies in the business were also to blame for the widespread compliance problems.

Hirsch has said, “We will continue to make these accusations,” and the SEC is looking into other companies like Coinbase and Binance.

Hirsch said that the SEC is interested in cryptocurrencies outside of traditional markets as well. We would be “active” in the matter of “intermediaries,” he promised. Those in this business that don’t live up to their end of the bargain include brokers, retailers, stock exchanges, and everyone else involved.

The official said that DeFi initiatives will also get the institution’s attention. Hirsch emphasized that their commitment to their research will not be affected by the DeFi designation being applied to platforms. “We will keep doing inquiries, we will be active in this space,” he said.

Hirsch did note the SEC’s increased enforcement authority had its limitations. The SEC’s budget is little and it lacks the resources of the financial behemoths it must contend with.

It’s possible that there are over 20,000 different tokens in circulation, and the SEC doesn’t have the manpower to keep tabs on them all.

Also Read: Binance US replied to the SEC regarding Mysterious Financial Transactions