According to Foresight News, Gurbir Grewal, the Enforcement Director of the U.S. Securities and Exchange Commission (SEC), addressed the cryptocurrency industry in a 15-minute in-depth discussion during an 'SEC Speech' event hosted by the Practicing Law Institute on Wednesday morning. Grewal condemned the 'significant violations' in the cryptocurrency industry and responded to criticisms that have been leveled at the agency over the years. He stated that the SEC's stance on the Howey Test is clear and consistent, with 'no secret analysis'.
In his speech, Grewal also expressed concerns about the cryptocurrency industry and marginalized communities. The Howey Test is a test created by the Supreme Court for determining whether certain transactions qualify as 'investment contracts'. If so, then under the Securities Act of 1933 and the Securities Exchange Act of 1934, those transactions are considered securities and subject to certain disclosure and registration requirements. Grewal's comments highlight the ongoing regulatory scrutiny faced by the cryptocurrency industry.