Gensler Era Ends with a 30% Decline in SEC Cryptocurrency Actions

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According to a report released by Cornerstone Research, the United States Securities and Exchange Commission (SEC) brought 33 cryptocurrency-related enforcement actions in 2024, a 30% decline from the previous year. Interestingly, last year’s figure marked the first year-over-year drop since 2021.

The decline coincided with the final year of SEC Chair Gary Gensler’s administration, which ended December 31, 2024.The report, titled SEC Cryptocurrency Enforcement: 2024 Update, highlighted a sharp decrease in administrative proceedings, which dropped by more than 50% compared to 2023, while litigation in U.S. district courts fell slightly. Despite fewer actions, monetary penalties imposed in 2024 reached a record $4.98 billion, largely due to a multi-billion-dollar settlement.

“Cryptocurrency enforcement remained a priority during Chair Gensler’s final year,” said Simona Mola, the report’s author and a principal at Cornerstone Research. Half of the 2024 enforcement actions were brought in September and October, shortly before the November presidential election. The SEC focused on cases involving fraud, market manipulation, and unregistered broker-dealer activities, maintaining its emphasis on applying the Howey test to cryptocurrency-related cases.

Comparing SEC Leadership Approaches

The report also compared enforcement trends under Gensler to those under his predecessor, Jay Clayton, who served as SEC chair from 2017 to 2020. Under Gensler’s leadership (2021–2024), the SEC initiated 125 cryptocurrency-related enforcement actions and resolved 98 of them, significantly surpassing Clayton’s 70 actions and 50 resolutions.

Monetary penalties under Gensler’s administration totaled $6.05 billion—nearly four times the $1.52 billion imposed during Clayton’s tenure. The report found that 66% of enforcement actions under Gensler included allegations of fraud, compared to 54% under Clayton. Meanwhile, Clayton’s administration focused more heavily on unregistered securities violations, which accounted for 71% of its cases compared to 63% under Gensler.

Future of Crypto Enforcement

The SEC’s overall enforcement efforts devoted to cryptocurrency have averaged approximately 6% annually since 2018. With the formation of a new crypto task force announced for 2025, changes to the agency’s enforcement priorities could be on the horizon.

“The SEC has continued to focus on its implementation of the Howey test,” said Abe Chernin, vice president at Cornerstone Research. “In 2024, the agency also concentrated on market manipulation and broker-dealer registration failures.” As the Gensler era concludes, observers are closely watching how the agency’s approach to cryptocurrency enforcement will evolve under new leadership.

Disclaimer: This article is intended solely for informational purposes and should not be considered trading or investment advice. Nothing herein should be construed as financial, legal, or tax advice. Trading or investing in cryptocurrencies carries a considerable risk of financial loss. Always conduct due diligence before making any trading or investment decisions.