The U.S. Securities and Exchange Commission (SEC) says its enforcement division “remains focused on the rapidly evolving crypto asset securities space.” The securities regulator filed a total of 760 enforcement actions this fiscal year. SEC Chairman Gary Gensler commented, “I continue to be impressed with our enforcement division.”
SEC Focuses on Enforcement
The U.S. Securities and Exchange Commission (SEC) announced its enforcement results for fiscal year 2022 on Tuesday.
During this period, the SEC “filed 760 enforcement actions and recovered a record $6.4 billion in penalties and disgorgements on behalf of the investing public,” the regulator explained. The total number of enforcement actions represents an increase of 9% compared to the previous year.
SEC Chairman Gary Gensler said:
I continue to be impressed with our Enforcement Division… Enforcement results change from year to year. What remains the same is the commitment of the staff to follow the facts wherever they lead.
The SEC noted that when it comes to the crypto industry, it announced in May the addition of 20 positions to the renowned Crypto Assets and Cyber Unit (formerly known as the Cyber Unit), almost doubling the staff of this unit. The agency pointed out:
The app remains focused on the rapidly evolving crypto asset securities space.
Staff from the SEC’s Enforcement Division also continued to investigate potential crypto-related misconduct, leading to several significant enforcement actions, the regulator described. They included charges against Blockfi Lending LLC, charges against 11 people for their alleged roles in the crypto Ponzi scheme Forsage, and “insider trading feeagainst former Coinbase product manager Ishan Wahi and his associates.
Gensler has often been criticized for his enforcement-centric approach to crypto industry regulation. Following the collapse of crypto exchange FTX, a growing number of lawmakers called on the SEC to step up oversight of the crypto. The SEC chief said the crypto field is “significantly non-compliant.”
Congressman Brad Sherman (D-CA) urged the SEC to take decisive action regulate the industry. The White House, Treasury Secretary Janet YellenFederal Reserve Vice Chairman Lael Brainard and several US senators have all called for proper crypto monitoring. Senator Elizabeth Warren (D-MA) emphasized that crypto needs “more aggressive applicationnoting that she will continue to push the SEC to enforce the law.
What do you think of the law enforcement-centric approach to regulation? Let us know in the comments section below.
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