Sunday, May 28

The SEC seems to be more open to bitcoin and cryptocurrencies

Key facts:
  • The director of the SEC, Gary Gensler, served as a professor of Bitcoin at MIT.

  • In 2021 the SEC approved the first bitcoin futures ETF in the United States.

The United States Securities and Exchange Commission (SEC) seems to be experiencing one of the most permissive eras towards the use of bitcoin and cryptocurrencies in the country. This after Gary Gensler, who served as professor of bitcoin and blockchain chairs at the Massachusetts Institute of Technology, took over as director of the commission in April 2021.

According to recent data, provided by economic research firm Cornerstone Reseach, in 2021 the SEC saw a reduction in the application of legal actions against cryptocurrency projects, which had been on the rise since 2017.

In 2021, the SEC applied a total of 20 legal actions, of which 14 were directed against initial offerings of cryptocurrencies (ICO). According to the report, of the total actions, 14 were brought to trial, while 6 went through administrative processes made by the commission itself.


On administrative processes, Gensler has previously stated how the SEC “has sufficient authority to regulate cryptocurrencies,” emphasizing regulation in investment platforms as is the case with exchanges.

The SEC has registered a total of 123 legal actions since 2013, in which it executed
his first speech. Source: Cornerstone Research.

The report also shows how the SEC has continued its stance against fraud, executing a total of 10 complaints in 2021 (not included as legal actions) against this type of activity. In contrast to this, in 2020 the SEC made a total of 16 complaints against scams in which any type of cryptoactive was involved.

Since you signed up the first case in 2013 in which bitcoin was involved in a ponzi scam, the SEC has registered a total of 123 legal actions, of which they have derived in more than USD 2.3 billion in fines.

For now, and according to data from Cornerstone Research, the SEC seems to set a position of user protection and not prohibition. This is in line with what was stated by Gary Gensler, who confirmed that the United States would not ban bitcoin and cryptocurrencies, as China did.

The regulatory environment in the United States

The United States is currently experiencing a high-pressure regulatory environment. But not by government entities, but by companies, who are the most demanding have been shown to clarify the regulatory landscape.

In recent reports made by CriptoNoticias, it has been shown how companies have increased their spending on lobbying and even donations from electoral campaigns, in such a way to be able to lead the debate on the regulation of cryptocurrencies to the highest political spheres of the country.

While China, and recently Russia, seem to want nothing with bitcoin and cryptocurrencies, beyond the pleas in favor of clearing the way for CBDCs from these countries, the United States does not want to follow the same path. For now, the environment can be considered one of uncertainty, since the legal framework by which companies in the bitcoin industry will be governed in the future has not been established.