December 5, 2022

SEC Continues Strict Monitoring Of Crypto

The Enforcement Division of the US Securities & Exchange Commission (SEC) continues to embark upon strict monitoring and scrutiny of the crypto industry.

Year-to-date, SEC has issued over 700 enforcement/regulatory compliance actions. Gary Gensler remarked that he is pleased with the Enforcement Division in the performance of their duties.

SEC’s Strict Scrutiny of Crypto Goes On

On 15th November 2022, US Securities & Exchange Commission (SEC) announced its year-to-date enforcement actions and results for 2022.

SEC informed that year-to-date about 760 regulatory and enforcement actions were initiated through SEC’s Enforcement Division.

As a result whereof, SEC had been able to recover record-breaking sums exceeding $6.4 Billion in the shape of disgorgement, fines, and penalties.

SEC further revealed that the number of enforcement actions taken this year was 9% more than the past year.

Enforcement Staff’s Dedication and Commitment Appreciated

Chairman SEC, Gary Gensler commented that he is pleased with the overall performance of the SEC, especially the Enforcement Decision.

He added that every year enforcement results change but what remains unchanged is the sheer commitment and dedication of SEC’s enforcement staff.

Earlier in May, SEC changed the name of its cyber wing and named it “Crypto Assets and Cyber Unit” for including cryptocurrencies. Within that month, SEC also announced a doubling of the workforce in that wing.

The special wing of the SEC revealed that its focus has never been distracted from the digital asset industry because the industry is evolving every day.

Active Investigation for Identifying Misconducts

SEC’s Enforcement Division’s uninterrupted attention can be proved by the fact that the Division is actively investigating crypto space for identifying potential misconduct.

According to the Enforcement Division, such misconducts draw the regulator’s attention and demand the initiation of enforcement action.

In this connection, charges have been framed against crypto entities and individuals, including Blockfi Lending LLC, claimed SEC.

Criticism against SEC’s Chairman

It is true that since Gensler has become the Chairman of SEC, he had been criticized from all quarters. Many criticize him for being ‘enforcement-centric’ rather than playing an encouraging role.

Even in the FTX’s turmoil, Gensler had been criticized for secretly helping the collapsed exchange in securing a ‘no-action’ order.

However, though these are rumors which haven’t been confirmed yet FTX did discuss in person the possibility of a ‘no-action’ order with the SEC’s Chairman.

Thereafter, Gensler made a public statement in which he denied such assertions. He added that if at any stage FTX was found ignoring the compliance, then FTX would be dealt with strictly in accordance with the law.

Congressman Urges SEC for Increased Oversight

On the other hand, Brad Sherman, a Congressman, was seen urging Gensler and SEC to be proactive with regard to crypto oversight. He suggested that the crypto industry must be regulated and oversight should be further increased.

Similar remarks were also suggested by Janet Yellen, Senator Elizabeth Warren, Lael Brainard, etc. who insisted on proper and aggressive oversight.