A Year Later Into The SEC’s Movement Into The Cryptocurrency Space And This Is What Happened
Why Did the U.S. SEC Send Subpoenas to Crypto Companies?
Back in March 2018, the U.S. Securities and Exchange Commission (SEC) sent subpoenas to different cryptocurrency companies operating in the space. However, there is no information regarding the size and implications of these decisions.
The SEC has been trying to have a more active position in the cryptocurrency market. The main intention is to control and regulate it. Different jurisdictions around the world are trying to implement regulations to the crypto market.
There have been several reports related to subpoenas and requests for information (RFIs) that started to roll out in 2018. According to an attorney that talked with CoinDesk, there have been 80 subpoenas in total. Nevertheless, other attorneys believe that hundreds of subpoenas have been already issued by the SEC.
The content of these subpoenas is relatively known. Most of them demand information about a token launch. Although these demands do not pose risks to large companies and institutions, small startups that do not have the legal resources to comply with the subpoena’s requests.
Apparently, the Subpoenas might just be a way to understand the cryptocurrency industry as a whole. An industry lawyer explained to CoinDesk that this is the tool that they have to understand the world.
Another possibility is related to the SEC trying to scare industry participants and to be compliant with the current regulations in the crypto space. The SEC could also be trying to take action against firms that have some unknown features in common.
Other countries around the world and regulatory agencies are also trying to understand how to better regulate the cryptocurrency space. Virtual currencies and blockchain technology expanded during the last years and the legal system seems to be operating from behind.