SEC crypto actions rose 183% in 6 months after FTX collapse.
The United States securities regulator increased its enforcement actions related to cryptocurrency significantly in the six months following the bankruptcy of FTX, a cryptocurrency exchange.
According to an analysis of press releases from the U.S. Securities and Exchange Commission (SEC) and news reports on its actions, the SEC undertook approximately six enforcement actions in the six months before FTX’s collapse.
However, in the six months after FTX’s bankruptcy on November 11, 2022, SEC crypto-related enforcement actions increased to at least 17, an estimated 183% increase from the preceding period.
The analysis does not include the two recent lawsuits the SEC brought against Binance on June 5 and against blockchain a day later.
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Some observers have suggested that the SEC is trying to redeem itself for failing to police FTX, following the increased actions, including the recent ones taken against the two exchanges.
U.S. Representative French Hill reportedly claimed that the recent crackdown was a “cover your ass” move from the regulator and SEC chair Gary Gensler, while speaking at an event in Washington, D.C. on June 7.
Let’s talk crypto. @RepFrenchHill says to Peter Roskam and Heath Shuler that bipartisanship played a huge role in drafting stablecoin legislation. #BHLegSem23 #BHEvents #Congress pic.twitter.com/D3B60qNgpS
— BakerHostetler (@BakerHostetler) June 7, 2023
Hill claimed that instead of Gensler “overseeing FTX,” the SEC head was instead “out bashing Kim Kardashian because she’s promoted crypto on some Super Bowl ad,” adding:
“[Gensler] opened up this year, in 2023, with all these enforcement actions; I think it looks like [cover your ass] to me.”
Markus Thielen, the head of research and strategy at Matrixport, and author of the book Crypto Titans: How trillions were made and billions lost in the cryptocurrency markets, previously told Cointelegraph he believes there’s an air of “embarrassment” for those who didn’t catch the issues at FTX.
Related: SEC lawsuits: 67 cryptocurrencies are now seen as securities by the SEC
Ripple CEO Brad Garlinghouse echoed the sentiment, claiming in a June 6 tweet that the SEC is “throwing lawsuits at the wall and hoping they distract from the agency’s FTX debacle.”
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