Since the first in 2013, SEC actions against cryptocurrency companies and startups had been on the rise. But according to recent statistics from economic research firm Cornerstone Research, 2021 marked the first year these actions decreased.
The obvious question is - why? Perhaps simply Covid and a generally backed-up legal system, meaning while prosecutions may have been delayed, they had not deceased.
Others say the difference is Gary Gensler, who was appointed director in 2021 and his experience prior to joining the SEC - as a professor of bitcoin and blockchain at MIT...
Lawmakers and politicians with misconceptions about cryptocurrency, and often a general ignorance of technology in general remain the biggest threat. But with the appointment of Gensler many of crypto's supporters are feeling a bit less worried, as it at least appears the SEC is now led by someone with a full understanding of what they're tasked with regulating.
Since 2013, the SEC has taken action in 123 cases that focused on cryptocurrency...
From otherwise legitimate projects that lacked the proper licenses to operate, to full blown Ponzi-scheme style scams.
Since their first crypto based case in 2013 - the amount of actions taken by the SEC each year has only grown, with the amount of cases peaking in 2020 with a total of 35. Last year, 2021, was the first decline in total cases with a total of 24.
Pressure on US Regulators and lawmakers continues to grow, as the industry increases political influence...
Particularly over the past 3 years the crypto industry has put a major focus on making sure their voices are heard by those who will eventually decide how their businesses will need to operate.
Getting to a position where they can be heard involves playing the game - political donations, charities, resources, speaking engagements. Cryptocurrency company founders and executives are being spotted in every corner of Washington DC these days.
Inside the crypto industry, as they go inside Washington DC...
The US crypto industry has accepted that new regulations are eventually coming - so the sooner they know what they will be, the better. Over the years we've heard multiple large investors and investment firms have say regulatory uncertainty is their main reason for still sitting on the sidelines.
While acknowledging the urgency for clarity, they cannot push so hard that politicians feel pressure to just 'do something' - sacrificing the time needed to draft reasonable, productive, and positive guidelines.
"The end goal everyone wants is a stronger, more stable industry, with better protected and informed investors and traders - and we're positive this can be achieved" says a contact from one of the major US crypto companies involved in lobbying Washington DC, who asked to remain unnamed, and that we note they are speaking as an individual and not a spokesperson for any organization.
But they also believe that completing their current goal must come before anything goes up for a vote, which my contact describes as 'educating lawmakers, because if there was a vote today I think about 10% of them would understand the impact of what they're voting on".
Which isn't as simple as addressing Congress and the Senate with a '1 size fits all' speech, my contact explains "There's a huge range of experience among lawmakers when it comes to finance and tech. That's why it's about asking for just a few minutes to speak to them 1 on 1 - and then we don't just lecture them on crypto but also make them feel comfortable to ask questions and raise concerns".
So, while the industry wants a resolution soon, a plan that aims for informed people making smart decisions comes with a speed limit.
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Author: Justin Derbek
New York News Desk
Global Crypto Press Association / Breaking Crypto News
