TechFlow news, September 19 — According to Blockworks, regulatory actions under SEC Chair Gary Gensler are becoming a fixed cost of doing business for crypto firms, potentially affecting the pace of innovation and development of new projects. Previous report, the U.S. Securities and Exchange Commission (SEC) reached a settlement with cryptocurrency lending platform Rari Capital. The SEC alleged that Rari's tokens constituted unregistered securities and questioned the authenticity of its auto-rebalancing mechanism.
Over the past year, at least a dozen crypto-related companies, including Uniswap Labs, eToro, and Binance, have settled with regulators, collectively paying over $4.3 billion in penalties. Binance paid $4.2 billion to the U.S. Department of Justice. Although the exact settlement amount was not disclosed, Rari Capital's co-founders also face five-year officer-and-director bars. The company had previously endured multiple setbacks, including a hacker attack, class-action lawsuits, and forced liquidation.
