Patrick Daugherty Offers Insight on SEC Actions Targeting Crypto Exchanges

Foley & Lardner LLP Partner Patrick Daugherty is quoted in the Axios Crypto newsletter, commenting on the recent actions by the SEC against major cryptocurrency exchanges.

Daugherty said in contrast to the early cases the SEC has brought against the industry, the recent ones may reflect a broader objective to “chill the market for these tokens.”

“Rather than a rifle, they’ve used a shotgun,” Daugherty explained. “Let’s say you’re managing such an exchange, and the SEC has claimed one of those tokens have been listed — that means logically you’re an illegal securities exchange.

“That means you should shut down or delist. You might do this even if you think the SEC is wrong, because it mitigates the damage,” he added.