According to TechFlow, on September 19, Blockworks reported that regulatory actions under SEC Chairman Gary Gensler are becoming a fixed operating cost for crypto companies, which may affect the pace of innovation in the industry and the development of new projects. Earlier news, the U.S. Securities and Exchange Commission (SEC) reached a settlement with cryptocurrency lending platform Rari Capital. The SEC accused Rari's tokens of constituting unregistered securities and questioned the authenticity of its automatic rebalancing mechanism.

Over the past year, at least a dozen crypto-related companies, including Uniswap Labs, eToro, and Binance, have reached settlements with regulators, paying a total of more than $4.3 billion in fines. Among them, Binance paid $4.2 billion to the U.S. Department of Justice. Although the specific settlement amount was not disclosed, Rari Capital's co-founder also faces a five-year executive ban. The company has previously experienced multiple setbacks such as hacker attacks, class action lawsuits, and forced liquidation.