{"id":30528,"date":"2022-09-29T23:01:43","date_gmt":"2022-09-29T23:01:43","guid":{"rendered":"http:\/\/egrowonline.com\/?p=30528"},"modified":"2022-09-29T23:01:43","modified_gmt":"2022-09-29T23:01:43","slug":"breaking-down-the-sec-and-cftcs-autumn-wave-of-enforcement-actions","status":"publish","type":"post","link":"http:\/\/egrowonline.com\/?p=30528","title":{"rendered":"Breaking Down the SEC and CFTC\u2019s Autumn Wave of Enforcement Actions"},"content":{"rendered":"


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Fall is here, and U.S. financial regulators are well on their way to making this the worst season for criminal enforcement yet. Every year at this time, due to budgetary considerations and perhaps quotas to fill, agencies like the Securities and Exchange Commission (SEC), Commodity Futures Trading Commission (CFTC) and Department of Justice (DOJ) ramp up their enforcement against crypto\u2019s alleged bad actors.<\/p>\n

In September 2019, you may remember, the SEC and CFTC sued and settled with the perpetrators of EOS, the largest ($4 billion) initial coin offering of all time. In December 2020, the SEC announced it was building a case against Ripple Labs. and that two of its executives had supposedly held illegal token sales totaling over $1 billion. And every year, a slew of cases are brought against lower-profile crypto projects \u2013 for any number of reasons.<\/p>\n

This article is excerpted from The Node, CoinDesk’s daily roundup of the most pivotal stories in blockchain and crypto news. You can subscribe to get the full <\/b><\/i>newsletter here<\/b><\/i><\/a>.<\/b><\/i><\/p>\n

\u201cThe SEC & CFTC end their fiscal year on September 30, so this is their last chance to score big wins they can highlight in their budget requests to Congress,\u201d Jake Chervinsky, head of policy at the Blockchain Association, tweeted. (He\u2019s made the point<\/a> before<\/a>.)<\/p>\n

This year is no different. Within the past 10 days at least three lawsuits were filed against crypto projects. One company was accused of market manipulation, a crypto influencer was charged with failing to report income and there\u2019s even a decentralized autonomous organization (DAO) thrown into the mix.<\/p>\n

The SEC is often accused of regulating through enforcement rather than issuing clear guidance. While the accused projects mentioned are comparatively small, each enforcement has a legal wrinkle that analysts think could set a dangerous precedent. It seems as though in the mad dash to file cases before the end of the fiscal year, mistakes can be made.<\/p>\n