SEC vs Cryptocurrencies

Lately, it seems that almost every week the SEC announces new cases against cryptocurrency companies suspected of violating securities laws. And this "supervisory" campaign shows no signs of slowing down.

Below is a useful list of recent cryptocurrency-related actions that the SEC has been involved in, including confirmed Wells Notices notifying companies of impending enforcement actions, reported inquiries, and a review of the largest unresolved lawsuits.

Upcoming Cases

Ethereum Foundation

Last week, previously redacted portions of a lawsuit filed by Ethereum software company Consensys against the SEC revealed sensational information: the Agency had secretly considered ETH to be a security for over a year. The SEC is actively investigating several U.S. firms involved in the buying and selling of ETH and examining the relationships of these companies with the Ethereum Foundation.

Robinhood

On Monday, the digital asset division of Robinhood, Robinhood Crypto, announced that it had received a Wells Notice from the SEC - effectively, a notification that the company will soon be sued for alleged securities law violations. Robinhood Crypto is to be sued for failing to register as a securities exchange and as a clearing agency.

Consensys

While the SEC has not yet sued Consensys regarding the company's relationship with Ethereum, the regulator sent the company a subpoena in April regarding MetaMask, an Ethereum wallet created by the software giant.

Uniswap Labs

On April 10, the SEC sent Uniswap Labs, a New York-based company, a Wells Notice, informing the company that it will soon be sued for alleged securities law violations.

Major Ongoing Cases

Coinbase

In one of the most significant ongoing legal battles in the cryptocurrency industry, the SEC has been fighting with the U.S.-based cryptocurrency exchange Coinbase since filing a lawsuit against the company in June of last year. The SEC has accused Coinbase of operating an unregistered securities exchange, broker, and clearing agency.

Binance

The SEC's case against Binance largely ran parallel to the case against Coinbase, as both major cryptocurrency exchanges were sued on the same day in June of last year.

Ripple

The most intense legal battle in the history of the cryptocurrency industry between Ripple Labs and the SEC concerns the XRP cryptocurrency token.

Kraken

Nine months after the cryptocurrency exchange Kraken agreed to pay the SEC $30 million and suspend its staking programs in the United States, the company was hit with another SEC lawsuit in November.

While regulatory actions aim to protect investors and enforce laws, the SEC's aggressive campaign may result in reluctance among companies to conduct business in the United States.