The U.S. Securities and Exchange Commission (SEC) has ended its regulation-by-enforcement approach to the digital asset industry and shifted its focus to prosecuting bad actors and fraud. This change is expected to reduce SEC enforcement actions in the industry. However, with the void left by the SEC, private plaintiffs may exploit the situation and bring lawsuits to determine whether certain digital assets are securities and hold businesses and their leaders accountable for alleged misconduct. The lack of clear interpretations of the securities laws in relation to digital assets leaves room for litigation. Companies should expect an increase in private litigation, particularly with meme coins becoming a potential target. It is important for businesses to work with their legal teams to assess their risk and develop strategies to mitigate exposure.



Other News from Today