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SEC Chairman Ramps up Cryptocurrency Enforcement: $281M in Penalties Imposed in 2023

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SEC Chairman Ramps up Cryptocurrency Enforcement: 1M in Penalties Imposed in 2023

The US Securities and Exchange Commission (SEC) increased its cryptocurrency enforcement actions by 53% in 2023. According to a new report, the 46 crypto enforcement actions carried out under Chairman Gary Gensler last year were the most the agency has carried out since 2013.

The SEC instituted 26 cases in US federal courts and 20 administrative proceedings in 2023. The total penalties imposed by the agency amounted to $281 million.

SEC Targets Cryptocurrency Securities

Around 82% of the SEC’s cases included fraud charges, while 37% addressed unregistered securities in initial coin offerings (ICOs). In total, the SEC’s actions targeted 124 defendants, of which 46% were firms and 54% were individuals.

According to Abe Chernin of Cornerstone Research’s Fintech practices, the SEC has focused on alleged violations of the so-called Howey Test for securities. Coinbase is currently fighting allegations it operated as an unregistered broker-dealer, while Kraken paid the SEC $30 million to settle allegations of selling unregistered securities.

Breakdown of SEC Enforcements by Alleged Violations | Source: Cornerstone Research

The agency instituted administrative proceedings involving non-fungible tokens (NFTs) for the first time in 2023. It charged the creators of the Stoner Catz web television series with raising $8 million for their show through the sales of Stoner Catz NFTs.

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The SEC Chairman is Not Done Yet

According to former SEC official John Reed Stark, the agency will likely pursue more enforcement actions against exchanges in 2024. Stark said more enforcement was necessary because most exchanges operate without regulatory oversight.

He said a primary concern is the conflicts of interest in many crypto businesses. For example, the SEC sued crypto and stock brokerage Robinhood in December 2020 for routing customer orders in a way that didn’t prioritize getting the best deal for customers. 

In June last year, the agency took Coinbase, the largest US crypto exchange, to task for depriving “investors of significant protections…and safeguards against conflicts of interest” and offering 12 tokens as unregistered securities. 

Read more: What Does It Mean To Receive a Wells Notice From the SEC?

The judge said last week in a hearing that the SEC’s standard of what constitutes security is defined too broadly. US District Judge Katherine Polk Failla said of the SEC’s assertions of its jurisdictions,

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“I want to understand how your standard does not sweep in the collectible market or commodities. It is a real fear that I have that your argument is just sweeping too broadly.”

Failla is expected to issue a ruling in the coming months. If she allows any part of the case to continue, the lawsuit could make it to trial next year.

Read more: Who Is Gary Gensler? Everything To Know About the SEC Chairman

In the long run, SEC chair Gary Gensler sees enforcement actions as a tool rather than a destination. The head of the SEC’s Crypto Assets and Cyber Units, David Hirsch, affirmed the agency’s goal to police the decentralized finance space.

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.

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Strategy Is No Longer Just Going to “Inoculate the Market,” Selling Crypto May Be Much More Common. Here’s What That Could Mean for the Stock | The Motley Fool

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Strategy Is No Longer Just Going to “Inoculate the Market,” Selling Crypto May Be Much More Common. Here’s What That Could Mean for the Stock | The Motley Fool

When Strategy (MSTR 0.69%) sold a modest amount of Bitcoin earlier this year, it was a noteworthy development given that the company’s business has centered around buying up as much of the cryptocurrency as it can, and vowing to never sell. And it often boasts of being the largest corporate holder of the digital currency.

The company brushed off the sale of 32 Bitcoins, with management saying it simply wanted to “inoculate the market.” Well, now it appears that Strategy is doing much more than just that, and there could be more significant cryptocurrency sales in the future.

Image source: Getty Images.

Strategy unveils a Bitcoin monetization program

On June 29, Strategy released a framework going forward that it says will “enhance liquidity, preserve long-term Bitcoin exposure, and support long-term value creation for shareholders.” Among the notable components is its Bitcoin monetization program.

Within that program, the company says it may sell some of its cryptocurrency holdings for multiple reasons, including to fund a USD reserve, fund dividends or interest expense, or to fund repurchases of digital credit securities or common stock.

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While the company says it remains committed to Bitcoin for the long term and it’s the company’s “primary treasury reserve asset,” it’s a significant change of course for Strategy, which was previously heavily against ever selling the digital asset.

Strategy Stock Quote

Today’s Change

(-0.69%) $-0.69

Current Price

$100.08

The stock is as risky and volatile as ever

Whether or not Strategy buys or sells Bitcoin doesn’t change the fact that this is a highly risky and speculative stock to own. While crypto fans may be disappointed in the company’s change in strategy, selling Bitcoin will likely not be enough to make the business any better or worse as an investment.

In just the past 12 months, the stock has plummeted a whopping 75% as volatility in digital assets has drastically weighed on its earnings, with the company incurring $12.8 billion in losses over the trailing 12 months, on revenue of $490 million.

That’s not likely to change significantly, even if Strategy offloads some of its crypto holdings, because with such a large exposure to Bitcoin, how the cryptocurrency performs will inevitably impact the company’s bottom line in a big way. This year, the leading cryptocurrency is down 28% as investor excitement around it has largely cooled off, which has proven disastrous for Strategy’s stock as well. And at this stage, there’s little reason to anticipate a recovery anytime soon.

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An Easy-to-Miss Radio Traffic Jam Is Behind Many Home WiFi Slowdowns

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An Easy-to-Miss Radio Traffic Jam Is Behind Many Home WiFi Slowdowns

Key Takeaways

Your WiFi can feel rock-solid at midnight and oddly sluggish by breakfast, even when you have not touched a single setting. The culprit is often outside your walls: a crowded slice of public radio spectrum where your router has to negotiate space with every nearby network, plus a grab bag of household gadgets that leak interference. Add peak-hours demand and the signal-blocking quirks of building materials and weather, and “slow internet” starts to look less like a billing issue and more like an invisible traffic problem you are forced to share.

When WiFi slows down without warning

One day your home WiFi feels snappy, the next it drags, even though your router hasn’t moved and your internet plan hasn’t changed. That swing is real, and it’s usually not your imagination or a “bad day” from your ISP. WiFi lives on shared airwaves, and those airwaves get crowded, noisy, and sometimes just plain finicky.

Think of your connection as a conversation in a busy room. Your laptop and router may be talking just fine, but the room itself can fill up fast with other chatter. What looks like a mystery slowdown is often the result of invisible competition and interference that changes hour by hour.

The battle of competing networks

Most homes still rely heavily on the 2.4 GHz and 5 GHz WiFi bands, which are unlicensed spectrum in the US. That “free for everyone” reality is convenient, but it also means your network shares space with your neighbors, their smart TVs, their work laptops, and every nearby router doing the same thing.

Congestion has a rhythm. During common work-from-home and school-from-home windows, especially 8-10 AM, and again in the evening 6-10 PM, more devices are streaming, video calling, syncing, and downloading updates. Even if you pay for fast broadband, your WiFi link can become the bottleneck when the local radio environment gets packed.

Interference inside your home

Your own house can sabotage you. A microwave is the classic culprit because it can leak noise near 2.4 GHz, exactly where many WiFi networks still operate. Older cordless phones, some baby monitors, and even dense clusters of Bluetooth gadgets can add more clutter, especially in smaller apartments where everything sits close together.

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Then there’s physics. Concrete, metal, and even water (think aquariums or thick pipes in walls) absorb and scatter radio signals. A router shoved behind a TV, tucked into a cabinet, or stuck in a far corner forces your devices to “hear” through more obstacles, lowering speeds and making dropouts more likely.

Weather, channels, and what you can do tonight

Environmental changes can matter too. Higher humidity and rain can slightly increase signal loss, and shifting temperatures can change how radio waves propagate around a neighborhood. You might never notice on its own, but paired with congestion it can tip a marginal connection into a frustrating one.

The 2.4 GHz band is also channel-limited. In the US there are 11 channels, but only 1, 6, and 11 don’t overlap. Many routers default to “auto channel,” so nearby networks can hop around trying to escape interference, sometimes creating instability. Practical fixes: prefer 5 GHz (or 6 GHz if you have WiFi 6E/7 gear), place the router centrally and higher up, and use a WiFi analyzer app to pick a less crowded channel instead of leaving it on auto.

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U.K.’s sanctions on cryptocurrency exchanges signal new focus on illicit digital financing – Compliance Week

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U.K.’s sanctions on cryptocurrency exchanges signal new focus on illicit digital financing – Compliance Week

Cryptocurrency exchanges believed to be financing Russia’s war in Ukraine have been sanctioned by the U.K. government in the first attempt to prevent evasion via “dark networks.” The move indicates a new focus on digital sanctions evasion, and compliance teams should expect these rules to develop further, potentially in the EU and other jurisdictions.


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Ruth Prickett graduated from Cambridge University with a BA hons in History and has specialized in business and finance journalism for the past 20 years. She was editor of Financial Management, the magazine…
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