Commercial Litigation Insights: Securities Enforcement? But They're Crypto Tokens, Not Shares…

Canadian and American regulators have made concerted efforts in the last year to definitively demonstrate that cryptocurrencies are under their securities purview and to accelerate aggressive enforcement proceedings. Yet, the crypto industry is mired in an indefinite and unenviable, and sometimes unknowable and often dangerous, game in Canada and the U.S., namely: regulation by enforcement, in the absence of crypto specific legislation. The events and trends of 2023 give some insight into what might be in store for cryptocurrency issuers and exchange platforms in 2024. However, only time will tell whether regulators will continue to double down on 'regulation by enforcement', or if sunnier days are ahead for crypto asset holders.