The latest report from Cornerstone Research shows that the US SEC took 30 enforcement actions against bitcoin-related companies in 2022, which is a 50% increase compared to 2021.
The SEC tightens the noose for crypto market participants
while the debate between the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) over who should be the preeminent regulatory watchdog of the US cryptoverse continues, the latter may already be winning the battle if the results of Cornerstone Research’s investigation are anything to go by.
According to a January 18 investigation report Titled “SEC Cryptocurrency Enforcement: 2022 Update,” the SEC took a total of 30 enforcement actions against 79 defendants and respondents last year.
The report notes that the feared regulatory watchdog filed 24 lawsuits in US federal courts and six administrative proceedings in 2022, an increase of 50 percent compared to the 20 actions served throughout 2021. .
Investigators also revealed that fraud allegations and unregistered securities offerings made up a large part of the agency’s enforcement actions.
One section of the report reads:
“Since the first action in July 2013, the SEC has filed a total of 127 cryptocurrency-related enforcement actions as of December 31, 2022, comprising 82 litigation and 45 administrative proceedings. In addition, the SEC has issued 20 stop trading orders pursuant to Section 12(k) of the Exchange Law and 12 delinquent production orders pursuant to Section 12(j) of the Exchange Law, along with one series of citations and monitoring of administrative procedures.”
In related news, the global crypto industry lost nearly $3.5 billion to scams and rug thefts in 2022. With the recent collapse of the Sam Bankman-Fried FTX exchange, regulators in several jurisdictions are already increasing their oversight of the industry. It won’t be a surprise to see even more enforcement this year.
