The last year that Gary Gensler served as chairman of the United States Securities and Exchange Commission (SEC) saw a significant decrease in cryptocurrency applications, according to a new report from financial analysis firm Cornerstone Research.
Decline in SEC’s Crypto Sanctions
According to the report titled “SEC Cryptocurrency Enforcement” prepared by Cornerstone Research, in 2024, the last year of Gensler’s term, there was a 30% decrease in the number of cryptocurrency-related sanctions carried out by the SEC compared to the previous year. While 2023 was the year with the highest number of cryptocurrency-related sanctions, this number decreased to 33 in 2024.
Despite the reduction in sanctions, fines imposed by the SEC on crypto firms have reached record levels. According to the report, financial penalties imposed on crypto asset market participants increased to $4.98 billion in 2024. The bulk of that figure came from a single multi-billion dollar deal.
According to the Cornerstone Research report, “In 2024, the SEC will decide on Terraform Labs PTE Ltd. and others, totaling $4.55 billion in financial settlements. “$4.05 billion of this settlement was refunded revenue and prejudgment interest.”
New SEC Chairman Appointed
This week, President Trump appointed Mark T. Uyeda as Interim Chairman of the SEC. This appointment could play a key role in how the SEC shapes its future regulatory policies.
The report stated that the sanctions made in the last quarter of 2024 constituted 50% of the total. This shows that the SEC’s regulatory activities towards cryptocurrency markets have intensified by the end of the year.
However, despite the decrease in sanctions, the increase in total fines reveals that large-scale cases have an important place in the SEC’s strategy. This cannot be considered an indication that the SEC will continue to regulate crypto markets, as the new SEC administration will introduce clear regulatory rules rather than taming the industry through enforcement.
Finally, these changes in the SEC’s regulation of cryptocurrency markets may impact market dynamics and investor confidence. Investors can closely follow such regulatory developments and shape their strategies accordingly.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
