The SEC Centered Its Attention on Enforcement
On Tuesday, the United States Securities and Exchange Commission (SEC) released the findings of its enforcement activities for the fiscal year 2022.
According to the explanation provided by the regulator, during that time period the SEC "filed 760 enforcement proceedings and recovered a record $6.4 billion in penalties and disgorgement on behalf of the investing public." In comparison to the previous year, there was a 9% rise in the overall number of actions taken for enforcement purposes.
SEC Chairman Gary Gensler expressed his opinion as follows:
Our Division of Enforcement continues to impress me in a very positive way... The outcomes of enforcement shift from one year to the next. The dedication of the personnel to following the facts wherever they may lead is something that will not change.
The Securities and Exchange Commission (SEC) stated that it has nearly doubled the number of employees working in its Crypto Assets and Cyber Unit since it announced the expansion of that unit in May. The Crypto Assets and Cyber Unit was formerly known as the Cyber Unit. This was stressed by the agency:
The rapidly developing field of crypto asset securities continues to be the primary enforcement priority.
According to the description provided by the regulatory agency, staff from across the SEC's Division of Enforcement continued to examine suspected instances of misbehavior linked to cryptocurrencies, which resulted in numerous significant enforcement actions. They included "insider trading accusations" against former Coinbase product manager Ishan Wahi and his accomplices, as well as charges against Blockfi Lending LLC, charges against 11 persons for their alleged roles in the cryptocurrency Ponzi scheme Forsage, and charges against Blockfi Lending LLC.
Many people are critical of Gensler's approach to the regulation of the cryptocurrency business because of its emphasis on law enforcement. Following the failure of the cryptocurrency exchange FTX, an increasing number of politicians have requested that the SEC increase the amount of monitoring it exercises over the cryptocurrency market. According to the head of the SEC, the cryptocurrency industry is "substantially non-compliant."
Congressman Brad Sherman, a Democrat from California, has requested that the Securities and Exchange Commission (SEC) take decisive action to regulate the sector. The White House, the Secretary of the Treasury, Janet Yellen, as well as the Vice Chair of the Federal Reserve, Lael Brainard, and many senators from the United States have all advocated for adequate crypto regulation. Senator Elizabeth Warren (Democratic Party of Massachusetts) emphasized the need for "more aggressive enforcement" of crypto laws, noting that she will continue to exert pressure on the SEC to carry out its responsibilities.