SEC Cost Crypto Firms $426M Under Gensler — Blockchain Association

Authored by Turner Wright via CoinTelegraph.com,

The Blockchain Association, a cryptocurrency and blockchain advocacy group, reported that the United States Securities and Exchange Commission had cost companies at least $426 million in litigation involving digital assets since Gary Gensler took over as chair.

In an Oct. 31 update to its “regulation by enforcement” page, the Blockchain Association (BA) reported that the SEC had brought 104 cases against the crypto industry from 2021 to 2023. According to the association, self-reported data by BA member companies — a “small slice of the industry” — suggested that crypto firms had spent $426 million in “defensive litigation” against the regulator.

“The industry – and the American voter – is ready for change and a fair shot,” said the BA.

“The time of law-fare against our industry must end. That begins with a change of leadership at the SEC.”

Many industry advocates and US lawmakers have criticized the SEC chair for a “regulation by enforcement” approach to crypto since assuming leadership in 2021.

Under Gensler, the commission has filed enforcement actions against Binance, Ripple, Coinbase and several other firms.

The BA claimed on X that, in addition to the money, Gensler’s “anti-innovation crypto crusade” resulted in “an immeasurable loss of jobs, innovation, and US tech investment.” The organization and its CEO, Kristin Smith, called on crypto users to support a change in leadership at the SEC.

Moving voters in the 2024 election?

The X posts did not specifically mention which political candidates the organization or Smith would support in the 2024 election for the SEC’s “change of leadership.”

Republican Donald Trump claimed he would fire Gensler “on day one” if elected, while reports suggested Democratic Vice President Kamala Harris was considering possible replacements for the SEC chair. 

“Crypto is an up-for-grabs election issue with the power to sway voters: no party currently ‘owns’ the issue, but voters say they are more likely to support and back candidates who support innovations in the digital asset space,” said the BA.

“Crypto Voters make up 18% of the electorate and are even more winnable on this issue.”

Early voting is still underway in many US states, with Election Day on Nov. 5. As of October, many polls showed Vice President Harris favored to win the popular vote, but the Electoral College race was effectively a toss-up between the Democratic candidate and Trump.