The U.S. Securities and Exchange Commission has acknowledged that many of its past enforcement actions against crypto companies may not have delivered meaningful benefits to investors. Since 2022, the agency brought dozens of cases tied to record-keeping and registration violations, collecting billions in penalties—but later concluded that many of these actions showed no direct investor harm or protection.

This marks a significant shift in tone. Critics have long argued that under former chair Gary Gensler, the agency relied heavily on “regulation by enforcement.” Now, the SEC appears to be reassessing that approach, signaling a move toward more targeted and impactful oversight rather than broad, high-volume crackdowns.