As crypto-adoption continues to rise and the industry becomes increasingly attractive to malicious agents, many US enforcement agencies have responded by turning up the heat on crypto-related crime. Several cryptocurrency exchanges have recently been targeted by US authorities, such as Binance, with the Department of Justice (DOJ) ordering the organization to provide information on its operations.

In addition, the Commodity Futures Trading Commission and the US Securities and Exchange Commission (SEC) have both recently implemented through investigations aimed at auditing and enforcing new rules. The SEC has also reportedly conducted several investigations involving high-profile crypto firms including Coinbase and Ripple.

The increased scrutiny by the DOJ and other US enforcement agencies is seen by many in the crypto space as a sign of progress for the industry. According to Naira Ttopigian, the co-founder and COO of Elliptic, a blockchain analytics firm, the recent actions of the DOJ and SEC demonstrate that these agencies are taking crypto-crime seriously and taking steps to protect investors from financial harm.

Notably, the DOJ issued an invitation to cryptocurrency exchanges to join its newly-created “Virtual Currency Benchmark Initiative,” a program designed to improve the safety and soundness of the digital asset market through the sharing of data. Companies that join the program are offered leniency during any current or future investigations.

In addition to federal agencies stepping up efforts to crack down on crypto-related crimes, some state governments have also implemented various regulations aimed at combatting financial wrongdoing. For example, Washington State recently passed a law requiring crypto-asset issuers to register with the state, while New York State has required service providers to obtain a “BitLicense” in order to conduct certain activities involving the sale, exchange and issuance of digital assets.

The industry has responded positively to the increased enforcement, with many cryptocurrency exchanges, financial organizations and legal experts recognizing the need for industry self-regulation. By working together to strengthen regulations and develop industry standards, the crypto industry could have an easier time gaining wider acceptance among merchants, investors and regulators.

As the cryptocurrency industry continues to evolve, the enforcement of laws and regulations is likely to remain a priority for US authorities. By taking steps to strengthen enforcement, US regulators can help to safeguard investments and protect investors from financial harm. This in turn, has the potential to increase the legitimacy of the cryptocurrency markets, making them more attractive to businesses, investors and other stakeholders.



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