SEC Crackdown on Crypto: Enforcement Actions Target Misconduct, Seek to Hold Bad Actors Accountable

Enforcing securities laws based on economic realities, not labels. Many crypto assets likely qualify as securities. Crypto markets rife with misconduct.

Holding bad actors accountable through bars, penalties, undertakings. Charged individuals in 2/3 of cases.

Impact cases change behavior, like recordkeeping enforcement sweep. 40 firms charged, over $1.5 billion in penalties.

Fair process that is timely and cooperative. Over 500 cases filed last year.

Positions of trust matter. Charged auditors, lawyers, credit raters for lapses. Markets depend on gatekeepers.