Crypto firms expand U.S. regulated presence amid OFAC sanctions and enforcement surge
U.S. crypto exchanges and trading firms are launching broker-dealer affiliates and tokenized securities products while regulators simultaneously impose OFAC sanctions and pursue fraud and market-manipulation charges.
This digest covers four major developments. First, digital-asset infrastructure firms are deepening U.S. regulated operations: Wintermute registered a U.S. broker-dealer affiliate with the SEC and FINRA, and Copper’s U.S. affiliate became a FINRA member to offer qualified custody and OTC services. Second, crypto exchanges are launching tokenized securities products, including tokenized stocks in the EEA and S&P 500 perpetual offerings, expanding retail and institutional access to traditional equities via blockchain. Third, OFAC sanctioned two crypto exchanges—Shelbit Exchange and Aban Tether—for facilitating Iran sanctions evasion and IRGC funding, adding wallet addresses to the SDN List. Fourth, DOJ, SEC, and CFTC announced parallel enforcement actions: an NFT founder was indicted for securities and wire fraud; a crypto market-maker was sentenced for wash-trading conspiracies; and Goliath Ventures and its CEO faced SEC and CFTC charges over an alleged $425 million Ponzi scheme. In-house counsel should review sanctions compliance programs, broker-dealer registration obligations, and tokenized securities offering disclosures.