SEC collects 8.2 billion USD in 2024: In fiscal year 2024, the SEC recorded a record collection of 8.2 billion USD from financial measures. This figure surpasses all previous achievements of the agency. A large portion comes from an agreement with the troubled blockchain project, Terraform Labs. This indicates the SEC is enhancing oversight of new technologies and taking firm action on financial transparency violations.

Fewer actions, greater effectiveness: Although the total financial measures increased, the number of enforcement actions decreased by 26%, to 583 cases. This reduction indicates the SEC’s focus on major violations in the growing cryptocurrency sector. With 2.1 billion USD from fines and 6.1 billion USD from recovering illicit profits, the SEC shows its commitment to restoring investor benefits.

Impact on Etoro and crypto industry: A notable example is Etoro, fined 1.5 million USD by the SEC and compelled to stop offering many kinds of digital currencies to U.S. customers. The SEC accused Etoro of acting as an unlicensed broker and defining cryptocurrencies as securities. This demonstrates the SEC’s firm stance on requiring securities law compliance for cryptocurrencies.

Traders must be cautious: Cryptocurrency traders need to conduct thorough research before making decisions to avoid legal pitfalls. The increasingly strict regulations demand transparent and compliant exchanges. This requires traders to understand the legal status of digital assets and stay updated with new regulations. Careful selection of reputable platforms is essential.