The SEC strengthens regulatory efforts, with multiple cases of encryption financing facing accusations recently.

Recently, the SEC( has significantly increased its regulatory efforts in the Crypto Assets sector, frequently holding hearings and initiating multiple charges. This trend seems to be related to the launch of Facebook's Libra project, which has sparked high levels of attention from regulatory agencies towards Crypto Assets.

On September 24, the U.S. Congress held a hearing on the regulation of Crypto Assets and Libra. SEC Chairman Jay Clayton stated that ICO regulation remains a challenge, as the existing Securities Act has not fully addressed the issues. The SEC's current regulatory approach still prioritizes investor protection while seeking broader and more effective regulatory methods. SEC Commissioner Jackson believes that the SEC's existing rules have fallen behind the pace of development in the crypto industry and should be adjusted towards encouraging Crypto Assets and enhancing industry transparency.

Since August, the SEC has filed lawsuits against multiple companies, involving ICO project companies, digital asset exchanges, blockchain technology companies, and rating companies, among others. The penalty amounts range from 260,000 to 10.24 million USD. Here are 6 recent charges initiated by the SEC related to Crypto Assets financing:

1. On August 12, the SEC filed a lawsuit against Reginald Middleton and his two companies, accusing them of fraud and an unregistered ICO, freezing assets involved in the alleged $15 million fraud.

On August 12, the SEC filed a lawsuit against the blockchain company SimplyVital Health.Inc for issuing unregistered securities, seeking the return of raised funds.

3. On August 20, the SEC fined the crypto assets analysis company ICO Rating $260,000 for failing to disclose the fees paid by projects that received positive ratings.

On August 29, the SEC filed a lawsuit against Bitqyck Inc. and its founders, accusing them of issuing fraudulent securities and operating an unregistered exchange, with penalties including the return of $13 million in raised funds and a $10.24 million civil fine.

5. On September 18, the SEC sued ICOBox and its founder Nikolay Evdokimov, accusing them of violating U.S. securities laws.

6. On September 23, the SEC charged Fantasy Market CEO Jonathan Lucas with manipulating a fraudulent ICO scheme.

The SEC has made it clear that digital currencies generated from ICOs are considered securities and must be regulated under securities laws. Bitcoin does not fall under the ICO-generated category and is therefore outside the SEC's regulatory scope; however, Bitcoin ETFs are subject to SEC regulation. The SEC requires all ICO projects to comply with existing securities regulations and register accordingly; otherwise, they will face severe penalties.

Despite the SEC increasing its regulatory efforts against illegal financing, it is also attempting to open more compliant channels. In July of this year, the SEC approved two projects to publicly issue digital coins through the RegA+ method. According to statistics, as of October 2018, the SEC has approved 39 STO projects.

Since 2018, the United States has become increasingly cautious in its regulatory attitude towards Crypto Assets, with a slowdown in policy issuance and a gradual shift towards regulatory policies. In 2018, the United States incorporated Crypto Assets into the existing securities regulatory framework and introduced a series of regulatory policies. In July 2019, the New York State Department of Financial Services established a new department specifically responsible for regulating Crypto Assets businesses.

As the application scope of Crypto Assets expands, global regulatory agencies are becoming increasingly cautious about this field. Especially after Facebook announced the Libra project, countries are paying more attention to the challenge that digital currencies pose to the status of sovereign currencies, accelerating their regulatory arrangements in the Crypto Assets sector.

Crypto Assets, as a special investment method, are regulated differently from traditional securities and payment systems. Since the birth of Bitcoin in 2008, the crypto industry and its regulation are still in the exploratory stage, facing many challenges and adjustments in the future.