The Blockchain Association, an advocacy group for cryptocurrency firms, recently revealed that crypto firms had spent nearly $426 million in legal fees to defend lawsuits filed by US Securities and Exchange Commission (SEC), led by Gary Gensler. This news came out in an October 31st report conducted with HarrisX to criticise Gensler’s “regulation by enforcement” strategy which adversely impacts all aspects of crypto industry. Not only were financial implications highlighted but so too was its effect on employment within sector with wide economic ramifications.
Expensive Regulatory Battles
The Blockchain Association in partnership with HarrisX, a research analytics firm, has shed light on the ongoing difficulties facing cryptocurrency industry. Data provided through HarrisX shows that between 2021-2023 under Gensler’s tenure at SEC, 104 legal cases against various crypto enterprises were instituted by SEC; total collective defense costs totalled an impressive $426 Million according to association members. As a response, their advocacy group advocates for regulatory reform as well as shift in leadership at SEC; condemning their practice of “lawfare” against cryptocurrency industry participants.
Regulatory Stance Now a Political Agenda
The Blockchain Association’s press release suggested that SEC Chairman Gensler’s stringent regulatory policy has become a political issue, impacting crypto enthusiasts’ voting decisions in elections. High-profile cases against Ripple, Binance and Coinbase highlighted this regulatory crackdown; according to Kristin Smith of the group’s CEO she took to social media in an attempt to rally support among digital currency enthusiasts for changing SEC leadership without endorsing any specific political figures or parties.
Impact of US Elections on Future SEC Directives
The impending US elections are of great significance, with the future leadership of the SEC hanging in the balance. Crypto enthusiasts and presidential candidates alike are closely watching how Donald Trump might use cryptocurrency as an election issue to influence voter decisions; Kamala Harris may look for someone new for this position if she wins; with 18% of voters identified as crypto voters potentially having an effectful impact on future policies regarding digital assets from SEC.
