Emily Walker
A new report by Cornerstone Research reveals that in 2024, the US Securities and Exchange Commission (SEC) experienced a significant decline in cryptocurrency enforcement actions. The total cases fell by 30%, with counts dropping from 47 in 2023 to 33 in 2024, marking Gary Gensler’s final year as SEC chairman.
Despite a drop in cases, the fines imposed soared to an unprecedented nearly $5 billion.
Historic Fine Impositions
While the number of enforcement actions lessened, the SEC amassed fines of record amounts, with most of this total stemming from a single multi-billion dollar settlement. This was a departure from Gensler’s earlier tenure, which, although marked by substantial fines, did not focus as intensely on specific cases.
Despite a brief rise in the number of lawsuits filed against the crypto industry in the final months that SEC Chair Gary Gensler was in office, the agency overall saw a 30% decrease in enforcement actions against the industry last year. pic.twitter.com/bMEMIiQ0V3
— Law360 (@Law360) January 24, 2025
From April 2021 to December 2024, the SEC imposed fines exceeding $6 billion for 125 cryptocurrency-related activities. This figure stands over four times higher than the $1.50 billion collected from 2017 to 2020 under Jay Clayton’s leadership.
Gensler’s Firm Stance on Fraud Cases
During Gensler’s leadership, there was a strong emphasis on addressing fraud. About 66% of cases in his tenure were centered on fraud allegations, an increase from 54% during Clayton’s time.
The SEC also continued its scrutiny of unregistered securities sales. Under Gensler, these violations made up approximately 63% of all enforcement actions, slightly down from 71% during Clayton’s term. This shift highlights the SEC’s ongoing commitment to regulating the cryptocurrency sector.
Contrasting Enforcement Approaches
When comparing Gensler and Clayton’s leadership styles, Gensler was notably more proactive, managing 125 enforcement actions over slightly more than three years, while Clayton led only 70 actions during a similar period.
Gensler’s ability to resolve 98 of these cases demonstrates a determined approach to enforcement. As the complexity of cryptocurrency markets grows, the SEC has adapted and increased its activity.
Future Outlook for Cryptocurrency Regulation
The unprecedented fines emphasize the SEC’s critical role in shaping the cryptocurrency landscape, despite the decrease in enforcement actions in 2024. With Gensler’s departure, it remains uncertain how new leadership will navigate the crypto sector.
Industry experts continue to speculate whether the SEC will maintain its stringent stance or adjust according to evolving market trends. Gensler’s term was characterized by strict oversight and record penalties, suggesting that US financial regulators will likely keep close watch on cryptocurrency regulation in the future.
Featured image from Evelyn Hockstein/Pool via Getty Images, chart from TradingView