Expect the SEC to Target More Token Exchanges After EtherDelta

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Summary

And while the EtherDelta action was the SEC's first against a crypto exchange, Hinkes told CoinDesk: "I'm surprised it took this long." The Securities and Exchange Commission's (SEC) settlement with the founder of EtherDelta is likely the first of many enforcement actions to come against crypto token exchanges. But a person familiar with the SEC's thinking told CoinDesk Thursday that crypto trading platforms have become a significant priority for the agency's enforcement division. "EtherDelta could have elected to filter out certain tokens," Hinkes said. As such, the news that the SEC had charged EtherDelta founder Zachary Coburn with operating an unregistered securities exchange can be seen as a shot across the bow of token-trading platforms.

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The Securities and Exchange Commission's (SEC) settlement with the founder of EtherDelta is likely the first of many enforcement actions to come against crypto token exchanges.

Until recently, the SEC's scrutiny of the cryptocurrency industry largely focused on projects and teams that raised money through initial coin offerings (ICOs) in possible violation of securities laws. But a person familiar with the SEC's thinking told CoinDesk Thursday that crypto trading platforms have become a significant priority for the agency's enforcement division.

As such, the news that the SEC had charged EtherDelta founder Zachary Coburn with operating an unregistered securities exchange can be seen as a shot across the bow of token-trading platforms.

"At this point, if you're doing an exchange of crypto assets, dealing with U.S. persons, you probably need to get...

Read the full article @ Coindesk