The US Department of Justice has initiated legal action against 18 companies accused of manipulating the cryptocurrency market, with Bitfinex exchange at the center of billion-dollar claims.

Questions for SEC Chairman Gensler

On October 9, at an event at NYU’s Institute for Corporate Governance and Finance, SEC Chairman Gary Gensler faced questions from law students about the applicability of the Howey Test, which classifies investment contracts.

Consequences for Cryptocurrency Leaders

Gensler highlighted that many cryptocurrency company leaders are facing legal consequences, as they are hesitant to follow SEC regulations due to a lack of clarity. He stressed the importance of existing laws for investor protection and noted that some notable figures in the industry are imprisoned or awaiting extradition.

Regulatory Environment and Future

As the legal landscape evolves, the cryptocurrency industry must navigate a complex regulatory environment, seeking clarity and compliance to mitigate risks and enhance investor trust.

Legal actions serve as a reminder of the need for compliance with laws among all cryptocurrency market participants, fostering a safer and more transparent financial environment.