The head of the SEC's enforcement division calls for strengthened cryptocurrency regulation

According to Jinse Finance, Gurbir S. Grewal, Director of the Enforcement Division of the US Securities and Exchange Commission (SEC), discussed cryptocurrency regulation at a seminar in William & Mary Business Law Review earlier this month. He emphasized the importance of enforcing federal securities laws in the rapidly evolving cryptocurrency market. Grewal pointed out that the fundamental definition of securities in the 1946 Supreme Court ruling SEC v. Howey case still applies to new investment plans, including encryption assets. SEC Chairman emphasized the significant investor losses caused by fraudulent encryption activities and urged the urgent need to address these harms. He pointed out numerous charges against issuers who conducted unregistered and fraudulent issuance. Grewal emphasized that innovation and compliance with securities laws are not mutually exclusive, and securities regulators are committed to working with crypto entrepreneurs to ensure compliance while promoting technological progress. Finally, he emphasized the need for strong enforcement to maintain public trust, protect investors, and enhance confidence in the financial markets through holding wrongdoers accountable and cultivating a culture of compliance.