The US SEC and other financial regulatory bodies might start intensifying their actions against crypto companies this September.
According to a well-known legal expert in the US, Jake Chervinsky. Financial regulators like the SEC and CFTC might start cracking down heavily on cryptocurrency this month. One of the reasons behind the move is that the fiscal year of US financial regulatory institutions is ending on September 30. (Fiscal year is a 12-month period that government and businesses use to keep track of their earnings and spending).
And good performance reports are a good KPI to justify these institutions’ spending. Therefore, the SEC, CFTC, and other financial regulatory bodies might increase their actions in order to improve their performance reports.
Reminder that the SEC, CFTC, and other regulators have their fiscal year end on September 30.It's typical in September to see a flurry of enforcement actions as they shore up their performance reports and budget requests for Congress.It could be a busy month.
— Jake Chervinsky (@jchervinsky) September 4, 2024
Should Crypto Expect More Scrutiny From the SEC?
Jake stated that the SEC and CFTC might increase their enforcement actions on crypto companies before the fiscal year ends. A lot of Government institutions love to submit impressive results to Congress in an attempt to show how well they are working. This will allow the institutions to request a fat budget for the following year.
Most of these institutions see the crypto industry as a soft spot to crack due to its incomplete regulations. This will allow the crypto space to receive more fines, court filings, and settlements on current cases.
For instance, The CFTC recently placed a $175,000 fine on Uniswap decentralized crypto exchange. This fine results from the accusation that Unisap allows illegal trading of digital assets. More actions like this might be seen in the crypto space throughout September.
However, some legal and financial experts believe these regulatory bodies will wrap up actions this month. Others think the regulatory bodies might take the out-of-court settlement approach. Whichever approach the regulatory bodies decide to use, the crypto space should expect more actions this September.
The Push for More Define Crypto Rules
As financial regulatory bodies take action on cryptocurrency, crypto enthusiasts and investors are beginning to ask for clearer regulations. They believe innovation and adoption will increase if there are straightforward rules and regulations for the crypto industry. Some think the current crypto regulatory framework is confusing, slowing down the sector’s growth.
The US Upcoming Election Impact on Cryptocurrency
Some believe the upcoming US election will usher big changes to crypto regulatory frameworks. As the two leading presidential candidates, contact with cryptocurrency hasn’t signaled negativity towards the industry.
For instance, Donald Trump, the former US President and current presidential candidate, has openly shown his support for cryptocurrency. This could increase excitement about the future of crypto if the election goes in his favor.
Kamala Harris, the other leading presidential candidate, hasn’t openly expressed her stance on crypto. However, the current US Vice President has also received donations in cryptocurrency. According to a report from Fortune, Alessia Haas, CFO, announced Kamala is now accepting donations in crypto via the Coinbase exchange. Alessia disclosed the information during a discussion with Peter Christiansen, Citigroup’s Payment Director.
The behavior of the two leading US presidential candidates towards crypto shows that the future of the industry is promising.
As the SEC and CFTC gear up for more regulatory crackdown on the crypto industry in September due to their fiscal year closure. The crypto community is also pushing for more straightforward rules and regulations. However, the US election and other upcoming political activities will greatly influence cryptocurrency’s future.
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