The organization criticizes that under Gensler’s guidance, the SEC has been hostile towards the ecosystem
“The SEC’s regulatory approach is harming US global technology leadership,” they say.
The United States Blockchain Association claims that the bitcoin (BTC) and cryptocurrency industry has spent more than $400 million in defense against the Securities and Exchange Commission (SEC) under the direction of former banker Gary Gensler.
The organization, in collaboration with HarrisX, surveyed its members, highlighting that these are only “a small portion of the industry.” The survey highlights that many legal cases against the industry are unresolved, anticipating greater expenditure on resources.
As the organization sees it, the SEC’s actions are an “immeasurable loss of jobs, innovation, and technology investment.”
According to the study, the cryptocurrency industry has been a priority target for the SEC, receiving more than 100 enforcement actions through 2023. The survey also reveals a shift in public perception: A growing number of voters believe the United States has taken the wrong approach to cryptocurrencies, so they are more inclined to favor clear rules on their application.
The entity highlights that, in total, 426 million dollars have been allocated by bitcoin companies to defensive litigation against the SEC, which maintains a “regulation by application” regime, as outlined by the Blockchain Association.
With the elections in sight, where the Republican Donald Trump and the Democrat Kamala Harris face each other, the Blockchain Association has touched on the electoral issue.
They claim that “the American investor and voter is eager for a change in leadership at the SEC,” and urges Congress to implement comprehensive bitcoin legislation. The survey shows that two thirds of voters They agree that the SEC should wait for clearer guidance from Congress.
Kristin Smith, executive director of the Blockchain Association, commented that the SEC’s regulation-by-enforcement approach “is harming America’s global technology leadership.” “And it is failing the American investor that the SEC is mandated to protect,” he argued.
For his part, Alex Chizhik, commercial director of HarrisX, added that cryptocurrency owners and the industry They are not against regulation. “They are against being singled out by a regulator with the aim of gaining political points.”
“They are against slowing down innovation at the expense of American jobs and the future strength of the industry. “Our analysis clearly shows inappropriate sanctions and an undue focus on this industry,” he said.
The SEC’s regulatory crusade
This cost of defense against the SEC is added to the more than $7.5 billion in fines that the regulatory office has imposed on companies in the bitcoin ecosystem, as reported by CriptoNoticias. The Blockchain Association emphasizes that the SEC’s hostility not only affects companies, but it also puts technological and economic leadership at risk. of the United States on the global stage.
The SEC has undertaken what many in the cryptocurrency industry perceive as a regulatory crusade, marked by a significant increase in fines, seizures and sanctions against companies and key figures in the sector.
This trend has intensified in recent years, with 2024 highlighted by the imposition of the largest fine in history from the SEC, reaching USD 4.68 billion to Terraform Labs and its CEO, Do Kwon, for the collapse of their UST and LUNA assets.
This year, fines averaged $426 million for each of the 11 enforcement actions, representing a 3,018% increase compared to the previous year, reflecting a more aggressive approach and unprecedented regulatory pressure, according to data from Social Capital Markets.
This article was created using artificial intelligence and edited by a human Editor.
