Blockchain Association Reports Significant Spending on SEC Enforcement Actions

The Blockchain Association's member firms claim to have spent $400 million in costs related to enforcement actions initiated by the U.S. Securities and Exchange Commission (SEC) under Chair Gary Gensler.

The advocacy organization, in partnership with HarrisX, shared this figure on Thursday along with findings on U.S. voters' perceptions of the SEC and cryptocurrency.

According to self-reported data gathered, anonymized, and aggregated by HarrisX, the U.S. digital asset industry has incurred over $400 million in defending itself against Chair Gensler’s SEC. This has resulted in untold losses to jobs, innovation, and U.S. investment, as stated by the Blockchain Association.

The association clarified that the reported $400 million is merely a “small slice” of the industry as it reflects only the sample from its member firms, which include notable players like Ripple, Coinbase, Crypto.com, Grayscale, and Kraken.

Since April 2021, Gensler has asserted that most cryptocurrencies qualify as securities and has emphasized that crypto firms must register and comply with the SEC's regulations. The SEC has launched several enforcement actions against prominent companies, including Coinbase and Kraken. In retaliation, some in the crypto sector have instigated their own legal actions against the SEC.

On Thursday, Coinbase Chief Legal Officer Paul Grewal shared the advocacy group's survey results on X. He remarked, "Those dollars are yours. Mine. All of ours. Think about that when you punch your clock, fill out your tax forms, and definitely think about that when you vote."

Survey Insights

The Blockchain Association and HarrisX also conducted an online survey about crypto regulation and enforcement from October 25 to 28, polling 1,717 registered voters nationally.

The survey uncovered that two-thirds of respondents believe the SEC should wait for clearer guidelines from Congress. Current lawmakers are drafting bills to regulate the crypto industry better and formulate specific rules regarding stablecoins, although none have yet passed into law.

Furthermore, the survey indicated that no single political party is seen as dominating the issue of digital assets or cryptocurrency in elections. Voters are divided on which party is more supportive of innovation in digital assets, with 34% favoring the GOP over 32% favoring the Democrats.

The SEC did not provide an immediate comment regarding the survey findings.