US SEC, NYDFS and OCC prepare for battle with cryptocurrencies, stablecoins and exchanges

The regulatory battle over cryptocurrencies is heating up as various U.S. agencies are expected to take a series of enforcement actions.

Electronic money

The latest enforcement action by the U.S. Securities and Exchange Commission (SEC) targets the Kraken exchange.

On February 9, the agency under President Gary Gensler charge A company that sells unregistered securities through a pledged product-as-a-service.

As a result, Kraken was fined $30 million and forced to stop staking services.

On Feb. 10, IBC Group founder Marion Nawfal speculated that there would be “substantial enforcement actions” against exchanges, banks, and tokens.

Smash Cryptocurrencies by Executing

However, the SEC is not the only agency cracking down on cryptocurrencies. The New York Department of Financial Services (NYDFS) is reportedly investigating stablecoin issuer Paxos. There are no details of the investigation yet, but a spokesman for the financial watchdog said in an interview:

“The Department is in constant contact with regulated entities to understand the vulnerabilities and risks to users and the organization itself that the volatility in the cryptocurrency markets we are dealing with. Encounters”.

Paxos is the third largest issuer of the stablecoin Binance USD (BUSD).

Additionally, there were reports that the Office of the Comptroller of the Currency (OCC – the US federal banking regulator) asked Paxos to withdraw its application for a National Trust bank license. February 9, Paxos reject this rumor.

“Clear rumor: Paxos has not received a request from the OCC to withdraw its application for a National Trust bank license, nor has it been denied a license. Paxos continues to actively cooperate with the OCC.”

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As has been repeatedly reported, U.S. financial regulators are often accused of taking a heavy-handed approach to regulating cryptocurrencies through law enforcement. Earlier this week, the CEO of Coinbase warned that if this situation persists, talent and innovation will leave the country. On Feb. 9, he predicted that the SEC would crack down on staking before Kraken was “beaten.”

“We’ve heard rumors that the SEC wants to cancel crypto pledges for retail customers in the US. The hope is untrue because it’s going to be a bad path for the US if it’s allowed to happen.”

SEC commissioner rebukes

On February 10, SEC Commissioner Hester Pierce went public criticize Its agency said that “enforcing laws to educate people about emerging industries is not an effective or equitable form of regulation”.

The cryptocurrency market plummeted following the news, with total market capitalization down 5.2% on the day. As a result, the entire market is now only $1.013 trillion, with many altcoins seeing double-digit losses.

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According to Beincrypto

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