SEC's Latest Crackdown on Crypto: What’s Going On?

SEC has really stepped up their game in 2024, hitting crypto firms with almost $4.7 billion in fines. That’s like a 3000% increase from last year, insane right?

Sounds like a nightmare for crypto businesses in the US. It’s like they’re trying to scare them off. Singapore or Dubai look way more attractive right now.

These stats are wild, I mean, over 3000% increase? That’s just crazy. What's up with the SEC? Also, what about Binance’s $4 billion settlement? Is that part of this?

Seems like they’re only going after big players who can actually pay those fines. It’s becoming a cash cow for the government. Just wait till other countries copy this approach...

In the debate he said he will impose sanctions to every country and will likely do the same to crypto companies conducting business in US. Binance $4B settlement is too much for a company but they did it. I think Trump will not do be a crypto friendly when he wins and so the reason he never really talk about it openly in the mainstream media. If US is doing it, nothing will stop the SEC of other countries to generate money as well through these companies. Nigeria did asked $10B after the authorities detained its executives for days. There is a particular term for asking these money but maybe we just don't say it.

Yes! I think Trump is going to continue what his predecessor has done with the crypto companies. The SEC looks more like an extortion racket under the protection of law. This 4 billion USD is higher than the GDP of at least 30 countries of the world as per IMF data of 2023. This statistics should make US the least favorite destination for crypto companies. For than matter Nigeria is one of the nations who are against cryptos from the very beginning. Companies should actively consider moving to UAE or Singapore who has a favorable legal structure towards business and also it is easier to find talented resources at a cheaper cost.

Yes, some companies have already started opening offices in the UAE and Hong Kong due to the open laws these countries have towards crypto, unlike the current US government. However, I expect that companies will want to work in the US due to it being the center of global finance and economy, so we hope that Trump has realized this fact as he is primarily an economist and is moving towards legislating more open laws towards crypto if he wins.

UAE and Hong Kong have put in place some business laws which is making them a global innovation and technology hub. Some of them offer tax exemption and have world-class infrastructures which can make business successful. I am aware that Gemini applied for a crypto licence in the United Arab Emirates. While Crypto.com got a Singapore license to operate there. Hong Kong's approval of Bitcoin ETF and its laws that allow banks to deal with crypto is making it attractive to crypto investors. Crypto firms like Huobi, Gate.io, Gate.HK, OKX and BitMEX all have a presence in the South Asian country. Other friendly countries that companies can consider include Malta, Belize Caymans and Bermuda. The US might be the number one crypto destination but investors will want to operate in countries with less stringent legislation.

Who knows what the numbers will be next year, they are obviously making a lot of money through their attack on crypto companies, the pattern is the same, they charge these companies and then agree a settlement with them for a large sum of money. The U.S. is unfriendly to crypto companies and i don't think it is going to stop, some people believe the Trump administration will change things if he eventually becomes president, but i really doubt that.

I am predicting that the numbers will reduce next year. With the sanctioning of some crypto companies, others will be forced to obey regulatory laws. Before now, the US regulatory laws were not explicit, but they are now clearer, which will make crypto firms easily abide by them. Some companies might also flee the US market to other crypto hubs if these attacks continue. Trump has shown some eye-service interest in the crypto industry, but nothing is certain; politicians can not be trusted.

I believe many crypto firms are going to leave the U.S market, it is very hard for them to function in this hostile system that the sec and the government has created for them. I don't even think that the U.S regulatory laws are now explicit, the only thing is that these companies can now see how previous cases have been handled and it can now serve as a precedent in the future. Yeah, nothing is certain, politicians can truly not be trusted, even if Trump wins, i don't think anything will change for crypto users in the U.S..

And where should we go? Singapore, Hong Kong, and the UAE come to mind but the amount of talent that the US has currently is not available anywhere else. I do think that the regulatory policy under the leadership of Gary has been harsh for the crypto industry in the US but it is just a phase  I believe. After the election things should change and if Trump comes into power he will favor these companies as he is always America first.

I too think that way - it's just a phase, plus, the rules became more clear, as it was said - so, maybe, things will change for the better. Otherwise, it becomes pretty hard to come along with a solution for a problem like that Trump and politicians, in general, can't be trusted, as  Fiatless said, I agree with that.

I know politicians cannot be trusted but rather than trusting Harris I would keep my trust in Trump. He has been an advocate of America first and as per what he has said publically he would try to make America a leading hub for cryptocurrency. I do not recall anything on the similar ground has been publically said by Harris in her election campaign.

Yeah, definitely, move to Singapore! Have you actually read who is the biggest contributor to this, the biggest scammer of all Do Known Scam, which has based his Ponzi scheme exactly in Singapore? Or do you mean we need more like the ones on that list? - GTV Media Group? with their G-Coins or G-Dollars? - John and Tina Barksdale , convicted for their scam with Ormeus Coin ? This is what you advocate, a heaven for scammers? I can't believe what it has arrived to, people here are taking the side of known scammers just because the SEC has fined them, this is becoming hilarious. Are you going to do the same when they fine Craig Wright?