Blockchain Association slams SEC enforcement actions under Gensler for stifling growth News ▸ US ▸ Regulation
Blockchain Association slams SEC enforcement actions under Gensler for stifling growth
The Blockchain Association called for clearer regulations and criticized the SEC's enforcement actions as costly and ineffective.
2 min read
Updated: Oct. 31, 2024 at 6:36 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
The Blockchain Association, a leading crypto advocacy group, reported that its member firms have collectively spent over $400 million addressing enforcement actions initiated by the US Securities and Exchange Commission (SEC) under chair Gary Gensler.
In an Oct. 31 statement, the association highlighted that Gensler’s SEC has filed 104 enforcement actions against players in the crypto sector. These actions have compelled industry members to spend an estimated $426 million in legal defenses against these regulatory challenges.
The Blockchain Association clarified that these expenses were self-reported by members and represent only a fraction of the industry. The group’s membership includes prominent names such as Ripple, Coinbase, Grayscale, Crypto.com, Paradigm, and Kraken — most still engaged in legal battles with the SEC.
In addition to financial burdens, the SEC’s aggressive approach has also led to significant job losses, stifled innovation, and reduced US investment.
Blockchain Association CEO Kristin Smith criticized the SEC’s enforcement-led approach, saying it undermines the US’ position in global tech leadership while failing to protect the American investors the agency is meant to serve.
Calls for regulatory clarity
Meanwhile, the advocacy group also conducted a national survey with HarrisX from Oct. 25 to 28, gathering input from 1,717 registered voters.
According to the group, polling data revealed a general sense among voters that the US has taken a misguided approach to crypto regulation. A significant majority indicated a preference for clear rules over enforcement-focused regulation by a margin of two-to-one.
Further, the survey found that two-thirds of voters believe the SEC should delay further action until Congress provides clearer guidelines that better protect the sector.
When asked about political affiliation, voters expressed that no single party “owns” crypto or digital assets as a campaign issue. Participants were split on which party would better support digital asset innovation, with a slight lean toward Republicans at 34%, compared to 32% for Democrats.
HarrisX’s Chief Commercial Officer Alex Chizhik said:
“Crypto owners and the crypto industry are not against regulation. They are against being singled out by a regulator aiming to score political points. They are against innovation being stiffed at the expense of American jobs and the future strength of the industry.”
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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Coinbase
Coinbase is a digital currency exchange and wallet service that allows individuals to buy, sell, and store digital currencies, such as Bitcoin, Ethereum, and Litecoin.
Crypto.com
Crypto.com was founded in 2016 on a simple belief: it’s a basic human right for everyone to control their money, data and identity.
Ripple
Ripple is a US-based technology company which develops the Ripple payment protocol and exchange network using XRP, the digital asset native to the XRP Ledger.
Grayscale Investments
Established in 2013 by Digital Currency Group, Grayscale Investments is a trusted authority on digital currency investing and cryptocurrency asset management.
Gary Gensler is an American government official and former investment banker who President Joseph Biden nominated to chair the U.S.