US SEC Faces Challenges Amid Increased Cryptocurrency Litigations

According to Odaily, as the US Securities and Exchange Commission (SEC) continues to open new fronts in the cryptocurrency war, there are now doubts about whether it has spread its resources too thin and whether it has enough legal resources to fight so many lawsuits with the industry's biggest players simultaneously. Scott Mascianica, a partner at Hilgers Graben law firm and head of government investigations and regulatory enforcement, stated that the simultaneous enforcement actions against cryptocurrency companies are significant and undoubtedly put pressure on the agency. Legal experts suggest that before the onset of numerous cryptocurrency lawsuits, the SEC may face issues such as resource constraints, travel budget cuts, and reduced available funds, preventing it from dealing with related matters as actively as possible. According to data from Cornerstone Research, by the end of 2023, the SEC's total fines against crypto-related companies and individuals amounted to $2.89 billion, with $281 million incurred in that year alone. Since its first action against the industry in July 2013, the SEC has taken 173 crypto-related enforcement actions by the end of 2023. Last year, the SEC initiated 46 crypto-related enforcement actions, a 53% increase from 2022.