Blockchain Association Claims SEC Actions Have Cost Crypto Industry $400 Million Under Gensler's Leadership

The Blockchain Association has accused the U.S. Securities and Exchange Commission (SEC) of costing the cryptocurrency industry approximately $400 million since Gary Gensler took over as chair. The advocacy group argues that the SEC’s stringent regulatory actions have placed an immense financial burden on the sector, impacting innovation and growth within the U.S. crypto market.

According to the Blockchain Association, the SEC's enforcement-focused approach has led to significant legal expenses, compliance costs, and a slowdown in crypto development and investment. The association contends that instead of providing clear guidelines, the SEC has primarily pursued enforcement actions, leaving crypto companies struggling to navigate an uncertain regulatory landscape.

Kristin Smith, CEO of the Blockchain Association, highlighted the cumulative cost of SEC investigations, fines, and compliance efforts imposed on crypto firms. She criticized the SEC's approach as stifling rather than protective, stating that “the SEC’s enforcement-only stance has discouraged growth and pushed innovators out of the U.S. market.”

Under Gensler’s leadership, the SEC has maintained that its focus on enforcement is necessary to protect investors in an emerging and sometimes volatile industry. However, the Blockchain Association asserts that the industry needs regulatory clarity rather than punitive measures to foster responsible innovation and ensure the U.S. remains competitive in the global crypto market.

The association’s report adds fuel to the ongoing debate over the SEC's role in regulating digital assets. As the crypto industry continues to grow, stakeholders argue that a balanced approach is needed to safeguard investors without stifling technological advancement.