The crypto ecosystem has had to constantly fight legal battles against the securities watchdog
The Blockchain Association, a key advocacy group for cryptocurrency and blockchain technology, recently reported that the US Securities and Exchange Commission (SEC) has cost the crypto industry at least $426 million in legal defense costs. This hefty price tag, according to the association, stems from the SEC’s increased enforcement actions against crypto firms since Gary Gensler took over as SEC chair in 2021.
An update from the Blockchain Association on October 31 highlighted these figures on its “regulation by enforcement” page, revealing that the SEC filed 104 cases against cryptocurrency companies from 2021 to 2023. The association emphasized that the $426 million figure is based on self-reported expenses from its member companies, a fraction of the industry, suggesting that the broader financial impact across the crypto sector could be even higher.
Industry advocates and some US lawmakers have expressed concerns over what they view as an overly aggressive approach from the SEC under Gensler’s leadership. Critics argue that this strategy discourages innovation and pushes technological development away from US markets.
The Blockchain Association, along with its CEO Kristin Smith, has openly advocated for a change in SEC leadership. It calls on crypto users to support political candidates favoring innovation and regulatory fairness for digital assets.
Looking ahead to the 2024 US presidential election, cryptocurrency has emerged as a hot-button issue that could sway a significant portion of the electorate. The Blockchain Association claims that “crypto voters” make up 18% of the voting base, with many more inclined to back candidates supportive of digital asset innovation. While neither political party has firmly claimed the crypto issue, Republican candidate Donald Trump has promised to remove Gensler “on day one” if elected, while reports indicate Democratic leadership may also be considering a change.
As early voting continues and Election Day approaches, the impact of the SEC’s actions on the crypto industry could influence voter turnout, adding another layer of significance to the 2024 election for both crypto advocates and regulators alike.
