SEC Crypto Defendants Spent $426 Million In Legal Defense Fees, Blockchain Association Reveals In New Report

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Julia Smith

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Julia Smith

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Julia is an experienced editor with a passion for covering a wide variety of beats. She loves all things politics and regularly covers regulatory updates on emerging technology here for Crypto News.

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Last updated:

October 31, 2024 16:40 EDT

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Member companies of the Blockchain Association reported on Thursday that they have spent an estimated $426 million on defensive litigation fees amid the United States Securities and Exchange Commission’s (SEC) regulation-by-enforcement approach to crypto under Chair Gary Gensler.

Blockchain Association Highlights SEC Concerns In New Report

Launched in partnership with HarrisXData, the report noted that since last year, the federal regulator has executed 104 enforcement actions against the crypto industry. However, “it’s impossible to quantify the innovation lost under Chair Gensler’s leadership.”

“A stunning figure: Our industry has wasted more than 400 million dollars defending itself against the SEC under Chair Gensler’s watch, with untold job and innovation losses,” Blockchain Association CEO Kristin said.

According to the report, crypto voters see the SEC’s enforcement of the sector as “overly aggressive,” prompting concerns it “stifles innovation” across the digital asset industry.

Data further shows that two-thirds of surveyed voters would prefer that the SEC wait to dole out enforcement actions until Congress develops clearer guidelines on the crypto industry, with participants citing “inconsistently applied” SEC actions.

Gary Gensler Could Be Fired Under Trump

The Blockchain Association’s report comes as the 2024 U.S. presidential election race winds to a close. Both Republican nominee Donald Trump and Democratic nominee Kamala Harris are attempting to court crypto voters ahead of November 5.

Trump has largely voiced his support for the blockchain sector and has promised to fire Gensler should he take office this coming January, warning American crypto businesses that they would be “living in hell” if he loses.

“If for some reason bad, bad things happen and we don’t win the election, those people that were under investigation and that are free as a bird right now, people that were being looked at in the crypto world, they will be living in hell because it will start the day after the election if they win,” Trump said during the launch of his family’s crypto platform World Liberty Financial last month.

Meanwhile, Harris has remained vague regarding her digital asset policy. However, she has promised to support a fair crypto regulatory framework as part of her continued outreach to Black male voters.

Though national polls indicate a neck-and-neck race, it remains anyone’s guess who will come out on top come Election Day.