As reported on November 26, the U.S. Securities and Exchange Commission (SEC) set a record in fiscal year 2024 with 583 enforcement actions and $8.2 billion in financial remedies. This total has been significantly boosted by Terraform Labs, which we estimated at $4.5 billion, making 56% of the total enforcement actions for the year.
However, the report highlighting the agency's achievements does not include the Ripple case that led to $125 million in civil penalties earlier this year. Ripple's Chief Legal Officer Stuart Alderoty criticized the dollar values, stating that these measures are insufficient to speak about successful regulations.
Trump administration is anticipated to assume office in January 2025; subsequently, news sources depict a change of strategy in the digital asset sector. Some sources indicate a plan to increase the authority of the Commodity Futures Trading Commission (CFTC) for cryptocurrencies, which means the redistribution of oversight responsibilities.
Chris Giancarlo, a former CFTC Chairman and one of the most prominent contenders for a leadership post in Trump's crypto policy, believes the agency will be able to regulate digital commodities satisfactorily. Giancarlo also stressed that the CFTC could quickly change to monitor digital assets with the proper funding and leadership.
This proposed shift corresponds to bipartisan measures like the Responsible Financial Innovation Act by Cynthia Lummis and Kirsten Gillibrand. The bill is designed to define relations between the SEC and CFTC on the DC digital currency market, which may decrease market ambiguity. A prominent contender for the SEC Chair is Paul Atkins, a former SEC Commissioner popular for advocating for innovation, suggesting a shift in the agency's position on virtual currency regulation.
The cryptocurrency markets had a mixed experience on 26 November due to regulatory changes. XRP was also found to have dipped slightly to $1.3988 by the end of the day after a 1.17% decline, paralleling the overall 1.35% decrease in the market. Market players are closely observing the key nominations in the Trump administration to gauge the direction of the SEC litigation and the market in general.
Bitcoin also had turbulence and was trading at $91,914 after a 1% fluctuation. The decline was supported by profit-taking in the BTC-spot ETF market in the United States, where the net outflow on November 25 was over $435 million. However, amid the downturn, there is hope that thought is given to the potential of further regulatory adjustments and the possible approval of more BTC-spot ETFs.