SEC’s crypto-actions surged 183% after FTX collapse in six months

SEC’s crypto-actions surged 183% after FTX collapse in six months

After the FTX revelations, the regulator increased enforcement in the crypto-space.

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Cryptocurrency-related enforcement actions undertaken by the United States securities regulator significantly increased in the six months following the bankruptcy of cryptocurrency exchange FTX.

In the six months leading up to the collapse of FTX, an analysis of news reports and press releases by the U.S. Securities and Exchange Commission revealed that the SEC had taken approximately six enforcement measures.

SEC enforcement actions related to cryptos are expected to increase by 183% in the six months following FTX’s bankruptcy, on Nov. 11, 2020.


Graph showing the number of SEC enforcement actions in each six-month period relating to crypto.

The analysis does not account for two recent lawsuits that the SEC filed against Binance and coinbase one day later.

Observers have suggested that the SEC has been taking more actions against the exchanges in recent months to make up for its failure to monitor FTX.

MarketWatch reported, that U.S. Rep. French Hill, speaking at a Washington, D.C. event on June 7, said the recent crackdown by the regulator was an attempt to “cover their asses” from Gary Gensler, the SEC chair.

Hill said that Gensler was not “overseeing FTX” but rather “out bashing Kim Kardashian for promoting crypto in some Super Bowl ad,” and added:

I’m not sure what to make of this: “[Gensler] is opening up in 2023 with all these enforcement measures; it looks to me like [cover your arse].”

Markus Thielen is the head of Matrixport’s research and strategy, and the author of Crypto titans: How trillions of dollars were made and lost in the cryptocurrency market. He told Cointelegraph that he thinks there’s a feeling of “embarrassment,” for those who missed the problems at FTX.

SEC lawsuits: SEC now considers 67 cryptos as securities

Brad Garlinghouse, CEO of Ripple, echoed this sentiment in a Tweet dated June 6, claiming that the SEC “throws lawsuits at a wall and hopes they distract from its FTX debacle.”

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