🚨 SEC 2024 Enforcement Actions Reach Record $8.2 Billion, Cryptocurrency Cases Become Market Focus
In the latest news, the U.S. Securities and Exchange Commission (SEC) has set a record this year with enforcement actions totaling $8.2 billion! This figure is staggering, with more than half coming from the cryptocurrency sector, particularly the $4.5 billion settlement in the Terraform Labs case.
The SEC has handled 583 cases this year, which is a 26% decrease from last year, but the amount of recovered funds is not to be underestimated. Among these, 431 are independent actions, while 93 are follow-up cases against individuals. SEC Chairman Gary Gensler stated that their top priority is to protect investors, especially in the increasingly risky cryptocurrency field.
Speaking of money, the SEC has recovered $6.1 billion in illegal proceeds and $2.1 billion in fines. The largest amount stems from the Terraform Labs case, where the company and Do Kwon were accused of large-scale fraud by the SEC, leading to the collapse of the algorithmic stablecoin TerraUSD (UST) and LUNA, resulting in losses of billions of dollars. Ultimately, they were ordered to pay $4.5 billion to the SEC.
Moreover, the SEC's strategy seems to be shifting. Although the number of cryptocurrency-related cases filed this year has decreased, the amount of fines has surged by over 3000%. This may be due to the SEC focusing more on high-profile and influential cases, similar to the large case like Terraform Labs.
During the Biden administration, under Gensler's leadership, the SEC has gained a reputation for strict scrutiny of cryptocurrency companies. However, now, with the potential re-election of President Trump, many believe that regulatory pressure may ease. This is because Trump has made statements during his campaign that on his first day in office he would fire Gensler, and Gensler himself later confirmed that he would resign in January 2025, coinciding with Trump's inauguration date.
💬 What are your thoughts on the SEC's series of enforcement actions regarding cryptocurrency? What possible changes might President Trump's re-election bring to the SEC's regulatory policies? What does the future hold for cryptocurrency? Let's discuss in the comments!