Traditionally, the SEC ramps up its enforcement actions in September, seeking to demonstrate productivity to Congress to justify its budget requests.
Bitcoin under pressure (MidJourney Livecoins)
The cryptocurrency sector in the United States is facing new regulatory pressure, with actions from the U.S. Securities and Exchange Commission (SEC) expected in the coming weeks.
According to Kristin Smith, CEO of the Blockchain Association, September could bring an increase in SEC enforcement actions as the agency looks to conclude the fiscal year with a high number of actions.
“Unfortunately, we will see more of these actions in the coming weeks,” she said, referring to the historic increase in SEC enforcement actions at the end of each fiscal year.
The latest target of these actions was the cryptocurrency trading app eToro, which had to pay a $1.5 million fine to the SEC.
As part of the settlement, the platform agreed to remove nearly all cryptocurrencies from its trading list for customers in the United States, allowing only Bitcoin, Bitcoin Cash and Ethereum.
This measure reinforces the SEC's understanding that Bitcoin is not considered a security, while other cryptocurrencies continue to be the target of regulatory uncertainty.
Cryptocurrency crackdown expected to increase in September
The reason behind this more intense regulatory movement in September is linked to the end of the SEC's fiscal year, which occurs on September 30th.
Traditionally, the agency intensifies its enforcement actions during this period, seeking to demonstrate productivity to Congress to justify its budget requests.
SEC Chairman Gary Gensler has already requested a $2.6 billion budget for 2025, with the aim of expanding his staff and tightening control over what he has called the “Wild West of cryptocurrency markets.”
On her X (Twitter) account, Kristin Smith warned that although the SEC has confirmed that Bitcoin and Ethereum are not securities, the United States is lagging behind Europe and the United Kingdom, which have already established clear regulatory frameworks for digital assets.
“The reality is that the U.S. is losing its lead in the race for digital asset innovation,” she said. She also highlighted the growing migration of companies and talent to more favorable jurisdictions if the regulatory environment does not change soon.
Kristin concluded her posts by calling for swift action from Congress to provide much-needed clarity to the industry before the U.S. loses its leadership in the global digital asset landscape.
