SEC Crypto Actions Surge 183% After FTX Collapse


    • The US Securities and Exchange Commission (SEC) has seen a 183% increase in crypto-related enforcement actions in the six months following the bankruptcy of cryptocurrency exchange FTX.
    • U.S. Representative French Hill suggested that the SEC’s recent crackdown is a “cover your ass” move from the regulator and SEC chair Gary Gensler.
    • Markus Thielen, head of research at Matrixport, and Ripple CEO Brad Garlinghouse believe that there is an air of “embarrassment” surrounding those who failed to catch the issues at FTX.

    SEC’s Crypto Actions Surge 183% After FTX Collapse

    The United States securities regulator stepped up its enforcement actions relating to cryptocurrencies following the revelations around FTX’s bankruptcy on November 11th 2022. An analysis of press releases from the U.S. Securities and Exchange Commission (SEC), and news reports on its actions, found that in the six months preceding FTX’s collapse, approximately six enforcement actions were undertaken with this number jumping to at least 17 in the six month period after their collapse – an estimated increase of 183%.

    U.S Representative Suggests SEC Covering Itself

    U.S Representative French Hill suggested that instead of Gary Gensler overseeing FTX, he was instead “out bashing Kim Kardashian because she’s promoted crypto on some Super Bowl ad”. Hill added “[Gensler] opened up this year, in 2023, with all these enforcement actions; I think it looks like [cover your ass] to me.” This suggests that rather than being proactive in policing potential negative activity within cryptocurrency exchanges, Gary Gensler has only acted once it has become public knowledge thereby covering himself if any wrongdoing is uncovered or suspected by members of Congress or other parties watching his progress as head of SEC closely.

    Markus Thielen Weighs In On Embarrassment Of Those Who Didn’t Catch Issues At FTX

    Markus Thielen, head of research and strategy at Matrixport believes there is an air of embarrassment amongst those who didn’t catch issues at FTX before they became public knowledge adding credence to French Hill’s suggestion that perhaps Gary Gensler is attempting to cover himself due to his lack of action against such events previously becoming apparent despite them being under his jurisdiction as Chairman fo SEC . Ripple CEO Brad Garlinghouse also echoed this sentiment claiming publicly in a tweet that “the current regulatory environment leaves much room for improvement.”

    Conclusion: Increased Enforcement Actions Show Regulatory Environment Room For Improvement

    It appears clear from these statements and analysis that not only did those involved fail to police FTX adequately but also suggests a greater oversight into how cryptocurrency exchanges are managed more generally so as too avoid similar circumstances arising again going forward as well as improved understanding between regulators, investors and cryptocurrency exchanges so all parties understand both their legal obligations clearly but also know how best too work together should any potential disputes arise outside CFTC/SEC jurisdiction moving forward without having too resort back too questions regarding whether one party may be attempting too cover themselves legally speaking should any wrongdoing be discovered or suspected further down the line .