The Blockchain Association (BA), a leading crypto advocacy group, reports that enforcement actions by the U.S. Securities and Exchange Commission (SEC) under Chair Gary Gensler have led to $426 million in legal expenses for crypto firms. This figure, drawn from data submitted by BA member companies, captures the high costs of “defensive litigation” as the SEC intensified its regulatory efforts since 2021.
In an October 31 update to its “regulation by enforcement” report, the BA stated that the SEC has filed 104 cases against crypto firms over the past two years. The BA claims that this approach by the SEC has hindered industry innovation, caused job losses, and discouraged U.S.-based tech investment. The group is now calling on voters to support leadership changes at the SEC to promote a more innovation-friendly regulatory stance.
Push for SEC Leadership Change and Voter Mobilization
The BA, along with its CEO Kristin Smith, urged crypto users to back a new direction for the SEC in the 2024 election, framing the crypto industry as a pivotal issue for voters. With 18% of the U.S. electorate reportedly interested in digital asset policies, the BA emphasized that no political party has yet firmly claimed the crypto issue, presenting an opportunity for candidates to gain voter support by advocating for digital asset innovation.
Several U.S. politicians have already indicated their positions on the matter. Republican candidate Donald Trump, for instance, has pledged to replace Gensler if elected, while reports suggest Democratic Vice President Kamala Harris is also considering potential SEC leadership changes.
Ongoing Crypto Litigation and Industry Impact
Since Gensler’s appointment, the SEC has pursued enforcement against notable industry players, including Binance, Ripple, and Coinbase. The BA criticized these measures as “anti-innovation” and argued that they have imposed significant financial and operational burdens on the industry. The BA’s public statement added that a new SEC approach could help end the “law-fare” targeting the crypto sector, creating a fairer landscape for digital asset innovation and growth.
With early voting underway and Election Day approaching on November 5, the BA sees the 2024 election as a critical opportunity to shape the future regulatory landscape for crypto in the U.S.
