SEC Enforcement Against Crypto Drops by 30%, But Fines Hit $5B

In 2024, the SEC initiated just 33 cases, compared to 44 in the previous year. However, including other enforcement actions, the total reached 90 charges, with 57 of those targeting individuals rather than organizations—highlighting the disproportionate impact on individuals.

Administrative cases also saw a sharp decline, falling by more than 50%. Despite the decrease in case volume, penalties hit a record-breaking $5 billion, with the majority—approximately $4.5 billion—linked to charges against the bankrupt company Terraform Labs.

If you focus solely on the numbers, the trend might seem positive. However, Gary Gensler’s actions have been deeply harmful to the crypto industry, regardless of the number of cases or fines imposed,

says The Coinomist analyst Anton Kryshtal.

The SEC’s most common charges included fraud (73%) and the sale of unregistered securities (58%), with these accusations often overlapping. Other allegations targeted market manipulation and failure to meet registration requirements.

Since Gary Gensler took over as SEC Chair in 2021, enforcement actions against the crypto industry have increased by 80% compared to the previous administration. By contrast, only four cases were initiated during the transition period between Donald Trump’s election and inauguration, highlighting the regulator’s responsiveness to political dynamics.

Mark Uyeda, currently serving as interim SEC Chair, has already introduced changes to the agency’s approach. For instance, the SEC recently repealed Staff Accounting Bulletin No. 121, which required financial institutions to record cryptocurrencies as liabilities on their balance sheets.

Related: Congressman Gerald Connolly Urges Ethics Probe on Donald Trump