The enforcement actions related to cryptocurrency by the U.S. Securities and Exchange Commission (SEC) saw a notable decline under the leadership of former Chair Gary Gensler. According to a report by Cornerstone Research, the SEC initiated 33 cryptocurrency enforcement actions in Gensler’s final year, which represents a 30% decrease compared to the 47 actions taken the previous year, which was considered the peak year for such activities.
In 2023, the SEC charged a total of 90 defendants in relation to cryptocurrency enforcement, consisting of 57 individuals and 33 firms. Additionally, there was a significant reduction in administrative proceedings, which fell by more than half. However, the monetary fines imposed on participants in the crypto space reached an unprecedented level of nearly $5 billion in 2024, largely driven by a $4.5 billion settlement with Terraform Labs.
Gensler, who began his term in 2021 under the Biden administration, concluded his tenure as SEC chair on January 20, coinciding with Donald Trump’s return to the presidency. According to Cornerstone, the majority of enforcement actions—over 50%—occurred during the months of September and October, while subsequent actions after the November elections were limited to just four.
Fraud was the most common allegation in the SEC’s crypto-related litigation, appearing in approximately 73% of cases. Other significant allegations included unregistered securities offerings at 58%. The SEC also ramped up charges pertaining to market manipulation and inadequacies in registering as broker-dealers. Notably, Gensler’s tenure saw nearly 80% more cryptocurrency enforcement actions compared to his predecessor, Jay Clayton, during the years 2017 to 2020.
Since 2013, the SEC has conducted a total of 207 enforcement actions related to cryptocurrency, with nearly half of these linked to initial coin offerings and non-fungible tokens. In a shift of priorities, the SEC under Acting Chair Mark Uyeda promptly rescinded the controversial Staff Accounting Bulletin 121, which required financial firms to list cryptocurrencies as liabilities on their balance sheets.
