## The SEC’s Crypto Crackdown: A $5 Billion Bounty
Another major development in the crypto regulation front is the announcement by the U.S. Securities and Exchange Commission (SEC) that it has taken over $5 billion worth of enforcement actions against crypto-related entities and individuals in fiscal year 2021, which ended on September 30.
In a speech at the 2023 Securities Enforcement Forum on October 26, SEC Chair Gary Gensler revealed that the agency has brought over 75 cases involving crypto-related misconduct, resulting in over $1.7 billion in penalties and disgorgement. He also said that the agency has obtained over $3.5 billion in emergency relief orders to freeze assets and protect investors from ongoing frauds.
Gensler also took aim at the crypto industry, saying that it is rife with abuse and manipulation, and that many crypto products and platforms are operating outside of the securities laws. He urged Congress to grant more authority and resources to the SEC to oversee the crypto space, and warned that the agency will continue to use its existing powers to protect investors and markets.
Gensler’s speech was seen as a clear signal that the SEC is not backing down from its aggressive stance towards crypto regulation, despite facing criticism and pushback from some lawmakers and industry players. Some of the high-profile cases that the SEC has pursued or initiated include:
- The lawsuit against Ripple Labs, alleging that it sold over $1.3 billion worth of unregistered securities in the form of XRP tokens.
- The settlement with BitClout, requiring it to return over $160 million to investors who bought its tokens without proper disclosure.
- The charges against BitConnect, accusing it of running a $2 billion Ponzi scheme that defrauded thousands of investors.
- The investigation into Uniswap Labs, seeking information about how it operates its decentralized exchange platform.
