Note: The figure focuses on SEC cryptocurrency litigations and administrative proceedings. Dates represent the filing date of the complaint or order instituting cease-and-desist proceedings under Section 8A of the Securities Act, Section 21C of the Exchange Act, and/or Section 203(e) and 203(k) of the Investment Advisers Act. Trading suspensions, delinquent filings, stop orders, subpoenas, and follow-on administrative orders are excluded from the figure. Gary Gensler was sworn in as Chair of the SEC on April 17, 2021.
“Rather than swiping left on crypto, we should remember that new technologies sometimes take a long time to find their footing. What kind of country would we have if regulators prohibited people from experimenting with technologies that other people think are stupid or meaningless or even ones that could cause harm? … Sure, sometimes people make very bad decisions on behalf of themselves or their families, but handing over the keys to the government does not ensure that decisions will be good.”[18]
Hester Peirce, SEC Commissioner, January 20, 2023
[4] Complaint, SEC v. Genesis Global Capital LLC and Gemini Trust Company LLC, 1:23-cv-00287 (S.D.N.Y.), January 12, 2023; In the Matter of Nexo Capital Inc., January 19, 2023, https://www.sec.gov/files/litigation/admin/2023/33-11149.pdf.
[5] Complaint, SEC v. Payward Ventures Inc. (d/b/a Kraken) and Payward Trading Ltd. (d/b/a/ Kraken), 3:23-cv-00588 (N.D.Cal.), February 9, 2023. See also SEC, “Kraken to Discontinue Unregistered Offer and Sale of Crypto Asset Staking-As-A-Service Program and Pay $30 Million to Settle SEC Charges,” Press Release, https://www.sec.gov/news/press-release/2023-25.
[6] Commissioner Hester M. Peirce, “Kraken Down: Statement on SEC v. Payward Ventures, Inc., et al.,” February 9, 2023, https://www.sec.gov/news/statement/peirce-statement-kraken-020923.
[7] Complaint, SEC v. Beaxy Digital, LTD et al., 1:23-cv-01962 (N.D.Ill.), March 29, 2023; Complaint, SEC v. Bittrex, Inc. et al., 2:23-cv-00580 (W.D.Wa.), April 17, 2023; Complaint, SEC v. Binance Holdings Limited et al., 1:23-cv-01599 (D.D.C.), June 5, 2023; Complaint, SEC v. Coinbase, Inc. and Coinbase Global, Inc., 1:23-cv-04738 (S.D.N.Y.), June 6, 2023; Complaint, SEC v. Payward Inc. (d/b/a Kraken) and Payward Ventures Inc. (d/b/a Kraken), 3:23-cv-06003 (N.D.Cal.), November 20, 2023.
[8] Chair Gary Gensler, “Getting crypto firms to do their work within the bounds of the law,” The Hill, March 9, 2023, https://thehill.com/opinion/congress-blog/3891970-getting-crypto-firms-to-do-their-work-within-the-bounds-of-the-law/.
[9] Administrative Proceeding Order, In the Matter of Impact Theory LLC, August 28, 2023, https://www.sec.gov/files/litigation/admin/2023/33-11226.pdf. See also SEC, “SEC Charges LA-Based Media and Entertainment Co. Impact Theory for Unregistered Offering of NFTs,” Press Release, August 28, 2023, https://www.sec.gov/news/press-release/2023-163.
[11] SEC, “SEC Proposes Enhanced Safeguarding Rule for Registered Investment Advisers,” Press Release, February 15, 2023, https://www.sec.gov/news/press-release/2023-30.
[12] Chair Gary Gensler, “’We’ve Seen This Story Before’ Remarks before the Piper Sandler Global Exchange & Fintech Conference,” Speech, June 8, 2023, https://www.sec.gov/news/speech/gensler-remarks-piper-sandler-060823.
[13] SEC, “SEC Reopens Comment Period for Proposed Amendments to Exchange Act Rule 3b-16 and Provides Supplemental Information,” Press Release, April 14, 2023, https://www.sec.gov/news/press-release/2023-77.
[15] Chair Gary Gensler, “Statement on the Denial of a Rulemaking Petition Submitted on behalf of Coinbase Global, Inc.” Statement, December 15, 2023, https://www.sec.gov/news/statement/gensler-coinbase-petition-121523; Coinbase, “Re: Petition for Rulemaking – Digital Asset Securities Regulation,” July 21, 2022, https://www.sec.gov/rules/petitions/2022/petn4-789.pdf.
[17] Commissioners Hester M. Peirce and Mark T. Uyeda, “Statement Regarding Denial of Petition for Rulemaking,” Statement, December 15, 2023, https://www.sec.gov/news/statement/peirce-uyeda-petition-121523.
[18] Commissioner Hester M. Peirce, “Outdated: Remarks before the Digital Assets at Duke Conference,” Speech, January 20, 2023, https://www.sec.gov/news/speech/peirce-remarks-duke-conference-012023.
The views expressed herein are solely those of the authors and do not necessarily represent the views of Cornerstone Research.