Gurbir Grewal, director of enforcement for the SEC, said that cryptocurrency is not exempt from enforcement.

The Securities and Exchange Commission (SEC) of the United States continues to work on bringing the cryptocurrency business under the purview of securities overreach. The enforcement division's director, Gurbir Grewal, has emphasized that the crypto business shouldn't anticipate a pass from the SEC.

Grewal said that the SEC is aware of complaints of its approach to the cryptocurrency business during his speech at SEC Speaks 2022, a conference put on by the Practising Law Institute (PLI). He observed that among these allegations, which mostly target the enforcement division, are that the SEC "picks winners and losers" and "stifles innovation."

He added that these concerns weren't directed at cryptocurrency because the SEC unfairly singled it out above other goods or markets. Instead, people in the cryptocurrency market are upset that the SEC is not "exempting the application of well-established norms and precedents" to the sector.

Grewal insisted that the SEC would keep up its fair enforcement of the law to safeguard cryptocurrency investors. This is particularly crucial given the increased interest in the market among non-White and lower-income individual retail investors that there have been concerns that cryptocurrency may be having.

"For the sake of investors and our markets, we have been entrusted with the difficult but crucial task of impartially enforcing the laws and regulations already in place. Therefore, if we are to fulfill our mandate, we cannot just give up the field when we encounter potentially innovative concerns, especially when those topics arouse strongly held opinions "said he.

He continued by saying that adhering to this strategy will guarantee that confidence in the regulatory system does not erode over time since investors will be well-protected.

The SEC is requesting that cryptocurrency startups and middlemen register with it. Grewal wasn't the only SEC representative to concentrate his comments on the cryptocurrency sector. Gary Gensler, the chair of the SEC, stated during the conference that, according to the Howey and Reves test established by the U.S. Securities Act, the majority of crypto tokens are securities.

He pleaded with cryptocurrency initiatives and intermediaries to voluntarily register with the SEC rather than expecting it to alter its regulations just because new technology is being utilized to sell securities to the investing public.

"These securities laws and the SEC's involvement have helped investors, issuers, and our economy as a whole for close to 90 years. The fact that certain securities are issued and traded using modern technology should not alter such oversight "Gensler indicated

The Enforcement Division has previously increased the staff size of its Crypto Assets and Cyber Unit and urged Congress to provide additional funding so that it may continue to go after people who violate the law in the crypto market.