Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesCopyBotsEarn
SEC crypto enforcement actions decline by 30% in 2024

SEC crypto enforcement actions decline by 30% in 2024

GrafaGrafa2025/01/24 12:10
By:Mahathir Bayena

The U.S. Securities and Exchange Commission (SEC) reported a significant decrease in its crypto-related enforcement actions during the final year of Gary Gensler's chairmanship.  

According to a recent Cornerstone Research report, the SEC initiated only 33 enforcement actions in 2024, down from 47 in 2023, marking a 30% decline.  

This reduction is notable as 2023 was the peak year for SEC enforcement in the cryptocurrency sector.  

The report highlights that the SEC charged a total of 90 defendants last year, comprising 57 individuals and 33 firms.  

Additionally, administrative proceedings saw a sharp decline of over 50%, indicating a shift in the agency's approach.  

Despite the drop in actions, monetary penalties imposed by the SEC reached nearly $5 billion, largely due to a $4.5 billion settlement with Terraform Labs.  

Gensler's tenure saw nearly 80% more crypto-related enforcement actions compared to his predecessor, Jay Clayton.  

Cornerstone noted that more than half of the SEC's actions in 2024 occurred in September and October, ahead of the presidential election, with only four actions initiated after November.  

Fraud remained the most common allegation, appearing in 73% of cases, while unregistered securities offerings were cited in 58% of actions.  

The SEC also increased its focus on market manipulation and failures to register as broker-dealers.  

Looking ahead, there are indications of changing priorities under acting chair Mark Uyeda, who has already canceled a controversial accounting rule related to cryptocurrency.  

As the landscape evolves, stakeholders will be observing how enforcement strategies adapt moving forward.  

"The SEC has continued to focus on its implementation of the Howey test," Abe Chernin from Cornerstone Research remarked, emphasising ongoing scrutiny in this area.  

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Locked for new tokens.
APR up to 10%. Always on, always get airdrop.
Lock now!

You may also like

The Daily: ECB President Lagarde rejects bitcoin for Eurozone reserves while the Czech central bank considers it and more

European Central Bank President Christine Lagarde said bitcoin is not an option as a reserve asset for the Eurozone’s central bank reserves, citing liquidity, security and regulatory concerns.Meanwhile, the Czech National Bank approved a proposal from Governor Aleš Michl to assess diversifying some of its country’s reserves into bitcoin.

The Block2025/01/30 21:34

'Inevitable collapse': Trump’s crypto push sparks concern at Paul Singer's Elliott Management: FT

The hedge fund said in a new investor letter that the “inevitable collapse” of the crypto bubble “could wreak havoc,” according to the Financial Times.Elliott’s Paul Singer has never been a fan of crypto, telling WSJ in 2023 that cryptocurrencies are “completely lacking in any value.”

The Block2025/01/30 21:34