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SEC Enforcement Actions and Gensler’s Critique of the Crypto World

Key Points:

  • Gary Gensler revealed that the SEC has taken significant enforcement actions over the past year, resulting in a total of $5 billion in judgments and orders.
  • Gensler also expressed serious concerns about the cryptocurrency sector.
  • Calls for greater clarity in the rules surrounding cryptocurrencies are coming from both the US Congress and the industry itself.

    Gary Gensler, the chairman of the United States Securities and Exchange Commission (SEC), continues to make waves in the financial and crypto industry. At this year’s Securities Enforcement Forum, he revealed that the SEC had taken 780 enforcement actions, including 500 standalone cases, over the past year.

    These actions have resulted in $5 billion in judgments and administrative orders. Of that amount, $930 million has been redistributed to affected investors.

    Gensler also highlighted that since December 2021, the SEC has filed lawsuits against 40 companies for various violations of rules and regulations, resulting in over $1.5 billion in penalties.

    A Critical Look at the World of Crypto

    Unsurprisingly, Gensler did not hesitate to express his reservations about the cryptocurrency industry. According to him, a significant portion of the crypto market should be considered securities and therefore be subject to the same regulations. He argued that most digital assets would meet the criteria of the “investment contract test“, classifying them as securities under securities laws.

    Gensler also drew parallels between the current crypto ecosystem and the financial world of the 1920s, a period marked by the absence of clear regulations. He argued that this regulatory gap has opened the door to various abuses in the crypto sector.

    It is worth noting that while Gensler maintains a critical stance, voices within Congress and the crypto industry are calling for greater regulatory transparency.

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