Crypto firms spent $400 million on SEC enforcement actions since April 2021.
Two-thirds of voters want clearer SEC guidelines for crypto regulation.
The U.S. digital asset sector has faced mounting costs exceeding $400 million in dealing with enforcement actions brought by the Securities and Exchange Commission (SEC) under Chair Gary Gensler. The Blockchain Association highlighted this figure, compiled and released in partnership with global markets research firm HarrisX, on Thursday, emphasizing the significant financial toll on industry players.
Since Gensler’s appointment in April 2021, the SEC has actively pursued cases against crypto firms, asserting that most digital assets qualify as securities. Companies such as Coinbase, Ripple, Kraken, and Crypto.com—members of the Blockchain Association—have collectively spent hundreds of millions on legal and compliance-related expenses.Moreover, according to a statement from the group, this amount represents only a “small slice” of the industry, with broader implications on job losses, hindered innovation, and decreased U.S. investment.
Raising Public Concern
The HarrisX survey, conducted online from October 25-28 with 1,717 registered voters, revealed public concern over the SEC’s approach. Two-thirds of respondents believe the SEC should wait for clearer regulatory guidelines from Congress before enforcing actions. Current legislative proposals, including bills for stablecoin regulation, have yet to pass, contributing to the ambiguity.
Political affiliation plays a role in voter perceptions, as survey results showed a near-even split on which party is more favorable toward crypto innovation. The poll found that 34% of voters lean toward Republicans and 32% toward Democrats, reflecting division on how best to support digital asset growth.
Meanwhile, industry leaders are vocal about their frustrations. Coinbase’s Chief Legal Officer, Paul Grewal, shared the survey findings on social media, underscoring the financial impact on taxpayers and urging voters to consider these issues at the polls. Meanwhile, critics argue that the SEC’s outdated regulations fail to accommodate the unique nature of digital assets, prompting some firms to challenge the agency in court.
The ongoing regulatory scrutiny has sparked concern over the future of crypto innovation in the U.S., with major firms like ConsenSys citing SEC actions as a reason for workforce reductions and emphasizing the tangible economic effects on the sector.
