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U.S. regulator labels pursuit of cryptocurrency firms as ineffective for investor protection., 2026/04/08 15:02:43
The U.S. Securities and Exchange Commission (SEC) has acknowledged that its previous approach of prosecuting cryptocurrency companies under former chairman Gary Gensler was misguided.
The regulator indicated that since 2022, it has initiated 95 cases and secured penalties totaling $2.3 billion for accounting violations. This includes seven investigations related to the registration of cryptocurrency firms and six cases concerning the operations of crypto companies as dealers. The SEC stated that no direct harm to investors was identified in these cases, and the pursuit of crypto platforms did not yield any benefits for investors.
The agency noted that instead of safeguarding user rights, it exhibited a misinterpretation of securities laws, inefficient resource allocation, and a focus on increasing the number of legal actions against businesses at the expense of genuine investor protection.
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SEC Chairman Paul Atkins remarked that following the inauguration of President Donald Trump in 2025, the SEC moved away from a stringent approach, halting the regulation of cryptocurrency companies through coercion. Under his leadership, the agency is concentrating on cases involving fraud, market manipulation, and breaches of investor trust, the official assured.
As of February 2025, the SEC has ceased legal actions against cryptocurrency exchanges Coinbase and Binance, the crypto division of trading firm DRW Cumberland, as well as companies Consensys Software, Payward (Kraken), Dragonchain, and Balina. According to data from consulting firm Cornerstone Research in November, the number of enforcement actions against companies, including crypto firms, decreased by approximately 30% in 2025 compared to 2024.
In February, Atkins stated that the volatility of the digital asset market and the bearish trend in the crypto market should not serve as a justification for tightening cryptocurrency regulations.
