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- The SEC has reported a record $8.2 billion in income through enforcement in the 23-24 fiscal year
- Digital asset cases were a major contributor to the record haul
- Chair Gary Gensler is stepping down from the agency in January
The Securities and Exchange Commission (SEC) has reported a record haul from enforcement action in the 2023-24 fiscal year, with digital assets a key contributor. Fraudulent crypto schemes and unregistered token sales have led to significant actions, contributing around half of the total, mainly thanks to the $4.5 billion settlement with Terraform Labs. The report is the final that will be released with Gary Gensler as its chair, following his decision to step down in January.
Cryptocurrency Enforcement on the Rise
A significant portion of the SEC’s enforcement activities targeted misconduct in the crypto market, which remained a hotspot for regulatory intervention in 23-24. These cases often involved fraudulent schemes designed to exploit investors or unregistered offerings that violated securities laws, although there have been some cases that have proved more divisive than others.
In a press release revealing the SEC’s enforcement actions, Gensler commented on the sector’s prominence, stating, “The cryptocurrency markets remain rife with noncompliance, and our enforcement actions are critical in protecting investors and ensuring fair markets.”
Crypto Cases Drive Record Financial Penalties
Crypto-related enforcement actions were a notable factor in the SEC’s historic financial remedies. Out of the $8.2 billion ordered, some 50% were down to cases involving digital assets. This includes civil penalties, disgorgement of profits from fraudulent activities, and interest, with Gensler remarking, “These cases send a clear message to market participants: we will hold those who exploit investors in the crypto space accountable.
$4.5 billion of the total came from one settlement, Terraform Labs, without which the figure would have been far less headline-grabbing.
The SEC’s aggressive stance on crypto regulation has received condemnation from many in the crypto space and some outside observers, who will hope that Gensler’s replacement, whoever it is, will take a more forward-thinking approach under the Trump administration.
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