SEC will not offer amnesty to crypto companies that admitted to breaking the law

But the agency’s representatives claim that cooperation with the investigation will mitigate the punishment

01.03.2022 - 14:10

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1 min

What’s new? Gurbir S. Grewal, Director of the Division of Enforcement for the US Securities and Exchange Commission (SEC), said that the agency will not offer amnesty to crypto companies that admitted to breaking the securities laws. However, cooperation with the investigation will mitigate the punishment and reduce the fines, Reuters reports.

Reuters’s material

How does the Commission operate now? Many had hoped that with Gary Gensler taking over as Chairman, the SEC would cooperate with cryptocurrency firms, but the agency has only tightened its stance on this issue. Gurbir S. Grewal stated:

“Our message to them is not, ‘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.’”

Earlier this month, the SEC accused BlockFi’s subsidiary of illegally granting an interest discount rate. The company will pay a $100 million fine. The US SEC also launched an investigationinto Binance.US’s ties to trading companies.

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