The SEC has rejected the possibility of introducing self-reporting amnesty for cryptocurrency companies
The U.S. Securities and Exchange Commission has clarified that it will not grant amnesty to cryptocurrency companies, Reuters reports.
This essentially means that those industry participants that have violated federal securities laws will not get a free pass for coming forward and being willing to engage with the regulator.
The SEC has come in for a lot of criticism within the cryptocurrency community for not providing enough regulatory clarity despite the fact that cryptocurrencies have been around for well over a decade.
Its “regulation by enforcement approach” has been slammed by Ripple and other industry participants who appeared in the crosshairs of the formidable agency.
Gurbir S. Grewal, the SEC’s enforcement director, has dismissed the idea of ignoring law violations:
Register your product and we’ll just ignore the billions you have under management in this crypto lending product and your violations of the securities laws.