Are you a crypto company concerned about SEC regulations? Thinking about self-reporting? Here's what you need to know: The U.S. Securities and Exchange Commission (SEC) will not be offering amnesty to cryptocurrency companies that self-report their violations of securities laws. Don't expect a free pass. Crypto companies that report their breaches of securities laws straight upfront shouldn’t expect the US Securities and Exchange Commission to grant them an amnesty in return. The SEC's message is clear.

No Amnesty for Self-Reporting Crypto Companies

Many believe that coming clean to the SEC would grant complete immunity. This isn't the case. Crypto companies that voluntarily report their breaches of securities laws shouldn't expect the Securities and Exchange Commission to grant them an amnesty in return. The United States Securities and Exchange Commission or SEC has indicated that it would not offer amnesty to crypto companies that report their own violation of security laws.

Self-Reporting Still Beneficial? Reduced Penalties Possible

While amnesty is off the table, self-reporting isn't necessarily futile. Cryptocurrency companies that self-report their violations won’t get amnesty, but could face smaller penalties for their infractions, according to the U.S. Securities and Exchange Commission. The U.S. Securities Exchange Commission (SEC) recently made it clear that cryptocurrency companies who decide to self-report violations of securities laws may receive lesser penalties.

Navigating the complexities of SEC regulations is crucial for crypto companies. Understanding the nuances of self-reporting, even without amnesty, can be a strategic advantage in mitigating potential penalties. Consult with experienced legal counsel to determine the best course of action for your specific situation.