Crypto Crackdown: Lawyer Predicts Even Worse To Come From SEC

The increasing popularity of the crypto market and the services provided by exchanges to address the global economic crisis have drawn the attention of government agencies worldwide. As a result, regulatory actions and concerns have risen in tandem with the crypto industry’s growth.

The United States Securities and Exchange Commission (SEC) has been intensifying its regulatory actions on the crypto industry, with a recent emphasis on exchanges falling under its jurisdiction and offering crypto-related “securities.” As a result, legal experts are anticipating even more stringent actions from the SEC.

Rough Road Ahead For The Crypto Industry

According to Jesse Hynes, a pro-crypto lawyer, many believe that the crypto crackdown is here, and while the worst has not happened yet, Hynes believes it is imminent. However, Hynes argues that it will ultimately be beneficial for investors.

Hyne’s statement highlights the “deceptive” marketing practices that some crypto companies engage in to attract investors. Using phrases such as “own,” “earn,” and “decentralized are common “tools” used by these companies to create a sense of investment opportunity and community involvement.

However, Hynes points out that these “marketing tools” can be misleading, as they often do not accurately reflect the true nature of the company or its operations. He further claims:

The answer is to protect those investors by actually giving them legal rights, entitlements, and protections as a result of their purchases. This is coming. I believe many crypto and NFT projects will be deemed to have raised money by way of security.

Jesse Hynes’ statement further clarifies that he is not insinuating that all non-fungible tokens (NFTs) or cryptocurrencies are securities, as the SEC has claimed in various opportunities. Instead, he points out that many were “packaged” and sold as part of a security offering during fundraising rounds.

Furthermore, Hynes argues that the regulatory system is “messed up and backward,” which is ineffective in targeting the worst actors in the industry. Instead, he suggests th

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Author: Ronaldo Marquez

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