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ARTICLE · 16 AUGUST 2021

A Busy Week For The SEC's Enforcement Efforts In Crypto's "Wild West"

Morrison Foerster
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The Securities and Exchange Commission ("SEC") brought three enforcement actions concerning digital assets in rapid succession in a week, underlining that the Division of Enforcement...

United StatesTechnology
Haimavathi V. Marlier
Haimavathi V. Marlier
Nitesh Daryanani
Nitesh Daryanani
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The Securities and Exchange Commission ("SEC") brought three enforcement actions concerning digital assets in rapid succession in a week, underlining that the Division of Enforcement is as committed to crypto enforcement under SEC Chair Gary Gensler as it was under former Chair Jay Clayton. These actions come on the heels of Gensler's August 3, 2021, speech before the Aspen Security Forum.1 Gensler's views were clear: "Right now, we just don't have enough investor protection in crypto. Frankly, at this time, it's more like the Wild West."2 Expressing concerns about investor protection, Gensler stated his view that many digital tokens are unregistered securities because they are investment contracts under the so-called "Howey Test"3 and that securities that trade on crypto trading platforms (including "decentralized finance" or "DeFi" platforms), and the platforms themselves, must be registered with the SEC. The three recent enforcement actions include:

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