On November 22, 2024, the U.S. Securities and Exchange Commission (SEC) reported $8.2 billion in financial remedies for fiscal year 2024, the largest in its history. This total includes $4.5 billion in penalties, largely attributed to enforcement actions within the cryptocurrency sector.

The SEC characterized these results as evidence of robust regulatory oversight, but critics in the cryptocurrency industry argue that the agency’s approach under Chair Gary Gensler has hindered innovation and pushed firms to operate outside the U.S. 

“Gary Gensler, has led a regulation-by-enforcement campaign against the industry that has been destructive of investor protections and destructive of innovation in ways that we think need to be addressed immediately,” Paul Grewal, Chief Legal Officer at Coinbase told The Times.

A report by Social Capital Markets shows that cryptocurrency-related enforcement actions accounted for $4.7 billion in fines during 2024, a dramatic 3,000% increase compared to 2023. This surge reflects a significant shift in the SEC’s enforcement priorities.

The SEC reported 583 enforcement actions for the year, including 431 standalone cases, a 14% decrease from the prior year. However, the increase in financial penalties underscores a focus on imposing substantial monetary remedies.

With Gary Gensler set to step down as SEC Chair in January 2025, the cryptocurrency industry anticipates potential regulatory changes. Many in the sector are advocating for clearer, innovation-friendly policies to support growth in the U.S. crypto market while ensuring investor protection.