The Blockchain Association called for clearer regulations and criticized the SEC's enforcement actions as costly and ineffective.
The Blockchain Association, a prominent crypto advocacy organization, has disclosed that its member companies have collectively incurred over $400 million in expenses related to enforcement actions by the U.S. Securities and Exchange Commission (SEC) under Chair Gary Gensler.
In a statement released on October 31, the association noted that Gensler's SEC has initiated 104 enforcement actions against entities within the crypto industry, leading to an estimated $426 million in legal costs for defending against these regulatory efforts.
These figures were self-reported by member firms and cover only a segment of the industry. Among the association’s members are notable companies like Ripple, Coinbase, Grayscale, Crypto.com, Paradigm, and Kraken, many of which are still actively involved in legal disputes with the SEC.
Beyond the financial impact, the SEC's stringent enforcement strategy has resulted in job losses, stifled innovation, and a decrease in U.S.-based investment in the sector.
Kristin Smith, CEO of the Blockchain Association, criticized the SEC's focus on enforcement, arguing that it harms the U.S.'s standing in global tech leadership while falling short in protecting American investors, which is the agency’s primary mission.
Push for Regulatory Clarity
The advocacy group also recently conducted a national survey through HarrisX from October 25 to 28, sampling 1,717 registered voters.
The results indicated a prevailing sentiment that the U.S. approach to crypto regulation has missed the mark, with a substantial majority favoring clear regulatory guidelines over an enforcement-centric strategy by a two-to-one margin.
Additionally, two-thirds of surveyed voters believe the SEC should refrain from further actions until Congress establishes more definitive regulations to protect the industry effectively.
In terms of political affiliation, respondents were divided, showing that neither major party dominates crypto or digital asset policy as a central campaign issue. Voters were slightly more inclined to see Republicans as supportive of digital asset innovation (34%) compared to Democrats (32%).
HarrisX’s Chief Commercial Officer Alex Chizhik said:
“Crypto owners and the crypto industry are not against regulation. They are against being singled out by a regulator aiming to score political points. They are against innovation being stiffed at the expense of American jobs and the future strength of the industry.”