The Worst Scenario for the Crypto Industry: SEC “Earned” $4.47 Billion Targeting Crypto Companies in 2024, and This Is a Staggering 3,000% Rise! 

In 2024 U.S. Securities and Exchange Commission (SEC) significantly increased its enforcement actions in the cryptocurrency space. According to reports, the SEC  “earned” $4.47 billion through settlements, fines and other legal actions against cryptocurrency companies and individuals. This is a staggering 3,000% increase in comparison with last year. This was for the most part due to the settlement with Terraform Labs in June, which was behind the Terra stablecoin project. It’s the largest enforcement action of the SEC against a crypto entity.

In general, the regulator has changed its strategy. The number of enforcement actions decreased to 11 against 30 initiated by the SEC last year. Despite this, the SEC focused on high-profile cases in the total fines therefore the increase of the amount was so dramatic. This year the SEC has targeted more significant cases with a broader impact on the crypto industry. 

As crypto becomes mainstream, the rising number of illegal cases follows and the SEC responds to it. However, its approach often relies on enforcement rather than clear guidelines. This leaves the industry in a state of uncertainty and it’s the worst thing the regulator can do, in my opinion. It hinders growth and innovation, creates an environment of fear and hesitation. Companies don’t know how to fully comply. This is the worst scenario for such a rapidly developing industry as crypto.

#SEC #Crypto