This slew of so-called “regulation through enforcement” has led many market pundits to argue that regulators need to be more clear in their approach to the crypto industry.“The U.S. regulatory response remains uncertain, but the prosecution may have far-reaching implications for the cryptocurrency industry.
Yamina Sara Chekroun, head of U.S. legal at Web3 payment infrastructure firm Ramp, told Cointelegraph, “Consumer-oriented actions by regulators should be applauded in light of the devastating losses users have suffered over the past two months as a result of mismanagement and the general lack of standardized requirements for risk disclosures. That being said, we should continue to honour due process, whether on Wall Street or in crypto.
“The recent slew of crypto-related prosecutions will ultimately help the industry evolve to a point where users don’t have to worry about the safety of their crypto assets from potential human misuse or theft.”
On July 13, the SEC filed a complaint against Celsius and Mashinsky, accusing them of violating securities laws by raising billions of dollars through unregistered and fraudulent offers. The FTC also fined Celsius $4.7 billion and ceased its trading operations.