By Lene Powell, J.D.
Financial systems are built on trust and need strong enforcement to keep that trust. SEC Enforcement Director Gurbir Grewal has spoken many times about rebuilding trust through robust enforcement, including through significant penalties, individual accountability, and sweeps targeting widespread misconduct. The SEC and CFTC delivered major victories this year on all these fronts and looks to continue along these lines next year.
Crypto assets were the big enforcement story this year, with the SEC and CFTC bringing novel and significant actions against a crypto lending platform, stablecoin issuer, smart contract operator, and decentralized autonomous organization, among others. Now, crypto markets are in turmoil after multiple implosions—FTX, BlockFi, Terra, Voyager Digital, and others. With a massive loss of public confidence and a new crypto-focused unit at the SEC, the stage is set for a major crypto crackdown next year.
For more details on how top enforcement trends will play out next year, click here—Banner enforcement year sets up SEC and CFTC for continued strength in 2023.