Cryptocurrency 'Regulation By Enforcement' As Hot As Ever: What's To Come From Securities Regulators In 2024?

Cryptocurrencies are becoming increasingly regulated under securities laws in Canada and the United States, often to the chagrin of those in control of crypto assets. In recent years, both Canadian and the U.S. regulators have made concerted efforts to definitively demonstrate that cryptocurrencies are under their purview and to accelerate aggressive enforcement proceedings. 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 legislation.

While the two countries often work together in cross-border investigations of crypto issuers and trading platforms, the timing of their regulatory changes and aggressiveness in enforcement actions have, at times, differed. Recent events and trends in the U.S. and Canada over the last year give some insight into what might be in store for cryptocurrency issuers and exchange platforms in 2024. Are