Bird Marella Principal Ariel Neuman was interviewed by Corporate Counsel at Law.com on what types of enforcement actions can be expected in the cryptocurrency sector in the near future.
Mr. Neuman comments, “Regulatory enforcement won’t be slowing in the near future. In fact, it will only be a matter of time until the U.S. Department of Justice joins the regulatory fray. The department will initially start by targeting clear-cut fraud, which is low-hanging fruit.” “In the near future, the enforcement actions will come in the form of easy to understand outright fraud or Ponzi schemes. Existing investigative strategies and laws can easily be applied to fraud scenarios, and victims are often easy to pinpoint as well. It will be some time before the DOJ cracks down on other possible wrongdoing in the crypto space, like securities fraud, because the SEC and other regulators still need to clarify which currencies will be considered securities.” “Enthusiasm from companies and clients have not dwindled. While they are asking questions as a precaution, the interest from regulators isn’t at all unexpected.”
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