The director of the SEC, Gary Gensler, worked as a professor of Bitcoin at MIT. In 2021 the SEC approved the first bitcoin futures ETF in the United States of America.
The United States Securities and Exchange Commission (SEC) appears to be going through one of the most permissive moments towards bitcoin and cryptocurrencies in the nation. Gary Gensler, who worked as a professor of bitcoin and blockchain chairs at the Massachusetts Institute of Technology, took over as director of the commission in April 2021.
According to the information given by the Economic Research firm Cornerstone Research, in 2021, the SEC observed a reduction in legal actions against cryptocurrency projects, which grew since 2017.
In 2021, the SEC executed at least 20 legal actions, of which 14 got directed against initial offerings of cryptocurrencies (ICO). According to the report, of the total actions, 14 were brought to trial, while six went through administrative procedures carried out by the commission itself.
Regarding the administrative processes, Gensler has previously stated how the SEC has enough power and authority to regulate cryptocurrencies, emphasizing the regulation of investment platforms such as exchanges.
The report also shows how the SEC keeps feeding its position against fraud, executing a total of ten complaints in 2021 against this type of activity. On the other hand, the SEC sealed a total of 16 complaints against scams in which any crypto asset was involved.
Since the first case got registered in 2013 in which bitcoin was part of a ponzi scam, the SEC managed to apply a total of 123 legal actions, which ended up being more than USD 2.3 billion in fines.
According to the data from Cornerstone Research, the SEC appears to be setting a position of user protection and not prohibition. This position is in line with what got stated by Gary Gensler, who confirmed that the United States of America would not prohibit bitcoin and cryptocurrencies, as China did.
The Regulatory Bills in the United States of America
The United States of America is currently going through a high-pressure regulatory environment. But not by government entities, but by companies, who are the ones that have been most demanding to clarify the regulatory landscape.
Recent reports have shown how companies managed to experience an increase in spending on lobbying and donations for electoral campaigns.
These companies gained the opportunity to bring discussions regarding the regulation of cryptocurrencies to the highest political elites of the North American country.
While China, and recently Russia, seem to reject bitcoin and cryptocurrencies more than ever, in favor of clearing the way for CBDCs from these countries, the United States of America does not want to run on the same road.
By: Jenson Nuñez
