A Ponzi scheme worth $200 million. A fake token sale that pulled in $100 million from unsuspecting investors. These are the kinds of cases the US Securities and Exchange Commission says it now wants to focus on — not the pile of enforcement actions it quietly admitted this week were a waste of time.
SEC Turns On Its Own Track RecordAccording to the agency, 95 enforcement actions and $2.3 billion in penalties tied to record-keeping violations since fiscal year 2022 “identified no direct investor harm.”
The SEC added that seven cases involving crypto firm registrations and six others centered on the legal definition of a dealer also fell into that category.
Those cases, the agency said, reflected a bias toward racking up numbers rather than protecting the people the commission exists to serve.
That self-criticism landed with force. It was a direct indictment of the approach taken under former SEC Chair Gary Gensler, who for years pursued what critics called regulation by enforcement — using legal action as a substitute for clear rules in the crypto space.
The agency itself used the phrase “unprecedented rush” to describe the push to file cases in the weeks before US President Donald Trump took office in January 2025.
Paul Atkins took over as SEC chair in April 2025 and moved quickly to change course. Officials said the commission has since redirected its attention toward fraud, market manipulation, and breaches of trust — the categories of misconduct that cause the clearest damage to ordinary investors.
Atkins said the old model prioritized “volume and record-setting penalties” over genuine protection.
Data shows the numbers back that up. Based on reports from consulting firm Cornerstone Research, SEC enforcement actions against public companies — including crypto firms — fell roughly 30% in fiscal 2025 compared to the year before.
Despite the pullback, the commission has not gone quiet. In May 2025, the SEC sued Unicoin and four of its executives, alleging the company raised $100 million by misleading investors about token rights and equity. Unicoin has disputed the agency’s version of events.
