SEC’s Crypto Crackdown: 46 Actions Mark 50% Surge in 2023
Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.
In 2023, the U.S. Securities and Exchange Commission (SEC) increased actions against crypto-related activities by over 50% from the previous year. They focused on enforcing rules in the cryptocurrency market and took 46 actions against various participants. This demonstrates a strong commitment to regulating and addressing issues in the crypto space.
SEC Crypto Enforcement Reached New High in 2023 https://t.co/OZsQ8rPGIe pic.twitter.com/TRLW8kuWbC
— WolfCtrader (@WolfCtrader) January 28, 2024
SEC Intensifies Oversight on Digital Assets in 2023, Taking Action in 46 Cases with a 53% Yearly Increase
Last year, the U.S. Securities and Exchange Commission (SEC) increased its oversight of digital assets. The SEC focused on cryptocurrency-related enforcement, handling 46 cases involving players in the digital asset market in 2023. This is the highest number since 2013, indicating a 53% increase from the previous year. In the first quarter of 2023, the SEC took action in 20 cases, marking the highest number in a single quarter. This underscores the SEC’s increased focus on regulating the cryptocurrency space.
New report reveals SEC's crypto enforcement surged in 2023, with a 53% increase from 2022. The 46 enforcement actions emphasize the SEC's focus on digital assets, imposing $281M in penalties. Read more: https://t.co/2ZrvNvK2oF
— Bony Bean (@bonybean) January 28, 2024
Therefore, the SEC’s closer look at cryptocurrencies in 2023 suggests increased regulation, which could affect how investors feel about them and shape where the industry is headed.
SEC 2023 Enforcement Actions: Highlights of 46 Cases, $281M Penalties, ICOs, and NFTs
In 2023, the U.S. Securities and Exchange Commission (SEC) took action in 46 cases. They dealt with 26 cases in federal courts and 20 through administrative proceedings. The SEC increased its use of administrative actions threefold compared to the previous year, resulting in $281 million in penalties through settlements. Notably, 37% of the cases were about initial coin offerings (ICOs), which is slightly less than in 2022.
Out of the 17 cases of initial coin offerings (ICOs), 82% were linked to fraud claims. Something interesting: the SEC initiated two administrative proceedings about non-fungible tokens (NFTs) for the first time. This shows their growing attention to various parts of the digital asset world.
SEC Chair Gensler Emphasizes Enforcement as a Tool Amidst Growing Crypto Actions
According to the report, SEC Chair Gensler sees enforcement as a tool, not the end goal. In the past two years, the SEC increased actions related to cryptocurrencies. In 2023, they took action against 124 people or businesses in the crypto space, with 54% being individuals and 46% representing firms.
Interestingly, the focus on individuals slightly decreased from the previous year, indicating a shift in approach. The SEC is now aiming for a balance between holding individuals and firms accountable in regulating and addressing problems in the cryptocurrency sector.
SEC Chair Gensler is watching crypto closely, focusing on both people and companies. This may affect how investors feel and how the crypto industry follows the rules.