A report from Social Capital Markets revealed an increase in the fines levied by the U.S. Securities and Exchange Commission (SEC) against the crypto currency industry. According to the report, SEC fines increased from $150.26 million in 2023 to $4.68 billion in 2024, marking a 3018% rise in penalties.

"I think our policies and our approach over the last several years have been just really a disaster for the whole industry," said SEC Commissioner Mark Uyeda, about the direction of policy to Fox News.

This increase signals a significant escalation in regulatory pressure on the crypto sector. However, despite the aggressive approach, industry observers point to a continuing lack of clarity in the SEC's regulatory framework. The Social Capital Markets report highlights that over $7.42 billion in fines have been issued against crypto firms and individuals between 2013 and 2024, with 63% of this total coming from the fines imposed in 2024 alone.

"We need to lay out some clear guidance and interpretations of what exactly falls within and outside of the securities laws," Uyeda told Fox News.

A key driver in the SEC's pattern of increasing fines is the agency’s 2019 decision to levy a massive $1.24 billion fine against Telegram Group Inc. for its initial coin offering. According to the report, this single case drove up the average fine by nearly 2000%, signaling a shift in the intensity of enforcement actions.

While the SEC's enforcement actions have intensified, there remains widespread confusion within the industry about compliance requirements.