SEC is getting serious to sue some of the DeFi companies. And this means the DeFi companies are meant to make a bit of difference with the investment and then SEC takes the profit away in the compliance and regulations. So one such case we discuss today. 

SEC is being very strict with the crypto companies and the projects. Especially projects in the DeFi category. They know that the funds are often used in the criminal activities. In such case SEC straightforward fines them.

Uniswap and many other companies have fallen to the DeFi argument. And they are forced to pay the fines. So if any company is on the USA soil then the DeFI argument won’t stand against CTFC and SEC.

Rari capital is the new DeFi company that fallen for the SEC charges and they also accepted the charges and decided to settle as per the tweet.

Rari capitals case didn’t just stopped at the company, it also fined the founders and the management through the case. Which means SEC is not taking things at the audit value but more on the action-consequences basis of DeFi money laundering.

Here’s my problem with SEC: Most of the exchanges, swaps, marketplaces on the crypto are clear cut illegal. And so this also means that the tech can be used for good. But if the illegal part is totally removed it would hurt the development in decentralized part.

I suppose eventually they will also crack at the lightning network too. Which would mean that such type of the crackdown cases are designed to stop the DeFi innovation and hurt the market standings of the company.

Though Rari capital founders decided to settle the case. It goes to show that a lot of companies who show their presence in CeFi market are next on the radar.