The US Securities and Exchange Commission (SEC) has taken a sharp turn in its approach to regulating cryptocurrencies. In a recent report, the agency criticized several enforcement actions taken under former Chairman Gary Gensler's leadership, labeling them as a misinterpretation of federal securities laws.
According to the report, the SEC dismissed seven crypto firm registration cases and six 'definition of a dealer' actions, citing that these cases produced no investor benefit or protection. The agency also singled out 95 actions targeting firms for recordkeeping failures, resulting in combined fines of $2.3 billion under Gensler's leadership.
Under new Chair Paul Atkins, the SEC is refocusing its efforts on cases that directly safeguard investors and strengthen the integrity of financial markets. Chairman Atkins emphasized that the agency has moved away from 'regulation by enforcement' and is prioritizing approaches that prioritize true investor protection.