Gary Gensler’s 2024 Crypto Report Card: SEC Enforcement in Decline

A new report from Cornerstone Research highlights a significant decrease in cryptocurrency enforcement actions during Gary Gensler’s final year as chair of the U.S. Securities and Exchange Commission (SEC). Despite fewer actions, financial penalties reached record-breaking levels, reflecting a shift in the SEC’s regulatory approach.

Drop in SEC Crypto Enforcement Actions

According to Cornerstone Research’s report, titled “SEC Cryptocurrency Enforcement,” the number of crypto-related enforcement actions in 2024 fell by 30% compared to the previous year. While 2023 marked the peak with the highest number of actions, the figure dropped to 33 cases in 2024.

Although enforcement actions declined, the total financial penalties imposed on crypto firms surged to $4.98 billion. A significant portion of this amount stemmed from a single billion-dollar settlement. The report notes that:

“In 2024, the SEC secured a total of $4.55 billion in financial settlements against Terraform Labs PTE Ltd. and other entities. Of this amount, $4.05 billion represented disgorged earnings and prejudgment interest.”

Mark T. Uyeda Appointed as Interim SEC Chair

This week, President Trump appointed Mark T. Uyeda as the interim chair of the SEC. This leadership change could play a pivotal role in shaping the agency’s future regulatory policies. Notably, the report mentions that 50% of the enforcement actions in 2024 occurred during the year’s final quarter, suggesting an intensified regulatory push toward year-end.

Strategic Shift in SEC’s Approach

Despite the decline in enforcement actions, the surge in financial penalties underscores the importance of high-profile cases in the SEC’s strategy. This shift, however, might not indicate an ongoing trend. Observers speculate that the new SEC leadership under Uyeda may prioritize clear regulatory frameworks over enforcement-heavy strategies.

Impact on the Crypto Market

The evolving regulatory environment, marked by fewer enforcement actions but higher penalties, could significantly influence market dynamics and investor confidence. As the SEC shifts its focus, crypto market participants must stay informed and adjust their strategies accordingly.

For more insights into regulatory developments and their impact on the cryptocurrency market, visit Dey There, your trusted source for crypto news and analysis.