For years, U.S. regulators have mostly had bad words and an unfriendly attitude toward the crypto industry. In 2023, they finally started to take action.

After crypto giant FTX collapsed in November 2022 due to mismanagement and criminal offenses, Wall Street’s top regulator, the U.S. Securities and Exchange Commission (SEC), has every reason to crack down on a company rife with “scammers, fraudsters, and fraudsters.” “Scammers” industry—in the words of SEC Chairman Gary Gensler.

But has the crackdown gone too far?

Some U.S. lawmakers, including pro-cryptocurrency Majority Whip Tom Emmer, have criticized regulators for “stifling innovation in the world’s largest economy.”