The Blockchain Association, a prominent crypto advocacy group, has strongly criticized the enforcement actions taken by the US Securities and Exchange Commission (SEC) under the leadership of Chair Gary Gensler. The association stated that its member firms have collectively spent over $400 million in response to these enforcement actions, which they view as costly and ineffective.
According to the association, Gensler’s SEC has initiated 104 enforcement actions against various players in the crypto sector, resulting in industry members having to spend an estimated $426 million on legal defenses. These expenses, as reported by members of the association, represent only a portion of the overall industry. Notable members of the group include Ripple, Coinbase, Grayscale, Crypto.com, Paradigm, and Kraken, many of whom are still involved in legal battles with the SEC.
In addition to the financial burdens imposed by these enforcement actions, the aggressive approach taken by the SEC has also led to job losses, hindered innovation, and reduced investment in the US. Blockchain Association CEO Kristin Smith criticized the SEC’s enforcement-centric strategy, stating that it undermines the country’s position in global tech leadership and fails to protect American investors as intended.
The association also conducted a national survey in collaboration with HarrisX, gathering input from 1,717 registered voters between October 25 and 28. The survey results indicated that there is a general sentiment among voters that the US has approached crypto regulation in a misguided manner. A significant majority of respondents expressed a preference for clear regulations over enforcement-focused measures by a two-to-one margin.
Furthermore, the survey revealed that two-thirds of voters believe the SEC should hold off on further actions until Congress provides clearer guidelines that offer better protection for the sector. When it came to political affiliation, participants stated that neither party exclusively supports crypto or digital assets as a campaign issue. There was a split in opinions regarding which party would better promote digital asset innovation, with a slight preference for Republicans at 34% compared to 32% for Democrats.
HarrisX’s Chief Commercial Officer, Alex Chizhik, emphasized that crypto owners and the industry as a whole are not opposed to regulation but are against being targeted by regulators seeking political gains. They are against stifling innovation at the expense of American jobs and the future growth of the industry.
