SEC Stays Focused on Cryptocurrency Enforcement, Imposes $2B in Fines in 2021 

The nation’s chief financial regulator had its hands full enforcing digital currency rules during the first year of the Biden administration.

A new report has found that the U.S. Securities and Exchange Commission (SEC) brought 20 lawsuits and administrative proceedings for cryptocurrency-related violations since the president’s team was installed at the agency a year ago, according to San Francisco-based economic and financial analysis research company Cornerstone Research.

In the 38-page survey, researchers analyzed activity from July 2013, the date of the SEC’s first crypto enforcement action, through the end of last year. In that time, the SEC brought 97 cryptocurrency-related litigations and administrative proceedings, 10 delinquent filing orders, 20 trading suspension orders, and several subpoenas and follow-on administrative proceedings, the report said.

At the close of 2021, the SEC had imposed $2.35 billion in fines against digital asset service companies. Of the 20 crypto enforcement actions, 14 were litigated in federal courts and six were resolved within the SEC. About half of the litigations occurred in New York.

Like previous years, the most frequent allegations are fraud and unregistered securities offerings. Most enforcement actions, 70%, stemmed from initial coin offerings. Of the actions brought last year, 80% alleged an unregistered securities offering violation, 65% were allegations of fraud, and 55% alleged both, the survey revealed.

Despite the SEC’s track record, experts have suggested the SEC must do more.

Read more: SEC, CFTC Coordination May Be the Way Forward for Crypto Regulation

In an interview with PYMNTS, Rutgers Law School Professor Yuliya Guseva said the SEC needs specific rules to police the burgeoning sector.

Also this month, U.S. Rep. Patrick McHenry (R-NC), the ranking Republican member of the House Financial Services Committee and cryptocurrency advocate, is urging Democratic Chairwoman Maxine Waters to work with the panel on digital currencies.

See also: Congress Should Take Decisions on Digital Asset Regulation, Says US Rep McHenry