As a seasoned researcher who has closely followed the digital assets sector, I find myself both intrigued and concerned by the latest actions of the US Securities and Exchange Commission (SEC). The revocation of Salt Blockchain’s securities license is a significant move, and it underscores the complex and evolving nature of regulation in this space.
In a recent move, the U.S. Securities and Exchange Commission (SEC) has taken aim at the digital assets industry, this time focusing on Salt Blockchain, a cryptocurrency lender. The SEC has withdrawn their securities license from the crypto lender, causing quite a stir in the market. It’s important to mention that the regulatory body has faced significant criticism from the cryptocurrency community due to allegations of excessive regulation on its part.
US SEC Revokes Salt Blockchain’s Securities License
In a recent announcement, the U.S. Securities and Exchange Commission (SEC) revealed that they have withdrawn the registration for Salt Blockchain’s securities. This action against the Delaware-based cryptocurrency lender stems from the company’s inability to adhere to legal reporting requirements, as indicated in the report.
According to the order, the company failed to submit its required periodic reports after December 31, 2021, breaching Section 13(a) of the Securities Exchange Act of 1934 and other regulations. This failure to adhere to reporting obligations has resulted in penalties being imposed, culminating in the withdrawal of their securities trading license by the regulatory agency.
Earlier in 2020, Salt Blockchain encountered regulatory challenges, but it seemed they had managed to overcome these obstacles. Moreover, the business had considered potential suitors at one time. However, recent regulatory actions suggest that Salt Blockchain continues to grapple with compliance matters.
As a crypto investor, I found myself facing a setback with Salt Blockchain on September 6, 2024, as their operations were affected by regulatory actions. Interestingly, this move was backed by Section 12 (j) of the Securities Exchange Act, which gives the agency the power to halt or freeze a securities license if an issuer fails to comply with legal requirements.
Crypto Market Remains On Edge
The SEC’s latest action against Salt Blockchain has stirred debates about the agency’s regulatory approach toward the crypto sector. Critics argue that the SEC’s enforcement strategy is too aggressive, potentially stifling innovation and growth within the digital assets market.
A significant portion of the cryptocurrency community sees these actions as evidence of excessive regulation. Recently, this agency has drawn intense scrutiny due to its decision to issue a Wells Notice to OpenSea, focusing on Non-Fungible Tokens (NFTs).
Moreover, Jake Chervinsky, Legal Chief at VariantFund, pointed out that as the US SEC and CFTC’s fiscal year-end nears on September 30th, they might increase their enforcement actions. Chervinsky explained that this is a common tactic by regulatory bodies to boost performance indicators for budgetary evaluations before the end of the fiscal year, as they aim to show increased activity and effectiveness. In a recent post on X, the CLO stated:
In September, it’s common to observe an increase in regulatory actions, as they prepare their annual reports and budget proposals for Congress by strengthening their performance.
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2024-09-06 22:32