The post US SEC Revokes Salt Blockchain’s Securities License: Implications for Crypto Regulation appeared on BitcoinEthereumNews.com.

The US SEC has taken significant action against Salt Blockchain, revoking its securities license over compliance failures. This move raises important questions about the regulatory landscape and the potential for broader enforcement in the crypto sector. “It’s typical in September to see a flurry of enforcement actions as they shore up their performance reports and budget requests for Congress,” noted Jake Chervinsky, highlighting potential trends in regulatory oversight. The SEC’s revocation of Salt Blockchain’s securities license signals a tightening grip on the crypto industry, raising concerns of regulatory overreach and the need for compliance in a fast-evolving market. US SEC Revokes Salt Blockchain’s Securities License In a critical development, the US SEC announced the revocation of the securities license for Salt Blockchain, a leading crypto lender based in Delaware. The agency found the firm in breach of regulatory reporting obligations after it failed to submit required periodic reports since December 31, 2021. This violation contravenes Section 13(a) of the Securities Exchange Act of 1934, which mandates regular disclosures from registered issuers. Implications for Salt Blockchain and Its Future This enforcement action against Salt Blockchain is not an isolated incident; the company had previously encountered regulatory challenges as far back as 2020. Despite appearing to have resolved those earlier issues, the recent action reveals ongoing compliance difficulties that hinder the firm’s operations. The SEC’s order, effective from September 6, 2024, has removed Salt’s ability to operate under a registered securities framework, potentially jeopardizing its business model and future financing prospects. Concerns Over SEC’s Regulatory Approach Salt Blockchain’s license revocation has ignited a robust discussion about the SEC’s regulatory approach towards the burgeoning crypto industry. Critics assert that the agency’s aggressive enforcement tactics jeopardize innovation, pushing companies towards off-shore jurisdictions where regulations are less stringent. Many stakeholders in the digital assets space…

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Filed under: News - @ September 6, 2024 8:27 pm