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Crypto Industry Should Brace for Brewing Enforcement Storm

Bracewell’s Anne Termine spoke with Law360 about the growing probability of aggressive enforcement from the government as it reacts to explosive growth in the crypto industry, and how crypto firms need to prepare for scrutiny on a variety of legal fronts.

“The regulatory risk is as high as it’s ever been,” said Termine.

The push from regulators to draw their jurisdictional lines around crypto comes after years of legislative inaction on the topic and clamoring from the crypto community for some kind of regulatory clarity that went beyond enforcement actions and public statements.

As more customers and investors are being drawn to those markets, it follows that the sibling regulators would look to beef up their enforcement campaigns as other regulatory bodies jump in the fray as well.

“The money is there, and this is why you’re seeing the agencies being more vocal and taking more action,” Termine said. “Their job is to protect customers, to protect the integrity of the marketplaces, and so that’s what they’re going to do.”

Termine added that she’s been telling her clients for a while now that, in light of aggressive comments and actions from the SEC and CFTC, it’s time to “take stock of what you’re offering customers.”

Click here to read more from Law360 (subscription required).