Crypto Fines Surge to $2.89 Billion in 2023
A recent report by Cornerstone Research has revealed that fines imposed by the SEC against participants in the digital asset market reached $2.89 billion by the end of 2023, marking an 11% increase from the previous year’s fines of $2.6 billion. This indicates the growing role of the SEC in safeguarding investors as the crypto market expands. The report also highlights a 53% rise in crypto-related enforcement actions initiated by the SEC, with allegations of fraud and unregistered securities offerings being the most common. Other actions include unauthorized securities promotion, market manipulation, and failure to register as broker-dealers.
External Support for Enforcement Actions
The report mentions the support received from external agencies and organizations such as US Attorneys’ offices, the FBI, the Commodity Futures Trading Commission, and the Internal Revenue Service in conducting these enforcement actions.
Gensler’s Approach and Bitcoin ETF Approval
Under SEC Chair Gary Gensler’s leadership, international assistance has significantly increased. However, some Republican lawmakers have expressed concerns that his approach may hinder American competitiveness and drive innovation overseas. Despite Gensler’s skepticism about cryptocurrencies, the SEC recently approved 11 spot Bitcoin ETFs, which is considered a major win for the industry. While this approval does not directly endorse Bitcoin itself, it opens doors for new investors and emphasizes the agency’s commitment to enforcing transaction standards for approved funds.
Hot Take: Crypto-Linked Violations Rack Up $2.8B in SEC Fines in 2023
A Cornerstone Research report reveals that fines imposed by the SEC against digital asset market participants surged to $2.89 billion in 2023, indicating the increasing role of the SEC in protecting investors. The report also highlights a significant rise in crypto-related enforcement actions and the assistance provided by external agencies. While some lawmakers have criticized SEC Chair Gary Gensler’s approach, the recent approval of 11 spot Bitcoin ETFs is seen as a game changer for the industry. Despite Gensler’s skepticism about cryptocurrencies, this move opens doors for new investors and underscores the agency’s commitment to enforcing transaction standards.
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