Key Takeaways
- Fewer crypto cases have been filed under Atkins. The SEC brought 16 crypto enforcement actions in Paul Atkins’ first 18 months as chairman, compared to the 38 in Gary Gensler’s. Fifteen of the 16 were filed in federal court.
- There have been allegations for fraud in every crypto case. All 16 Atkins-period actions alleged fraud against about 71% under Gensler. Registration claims still appeared but only alongside fraud.
- Total monetary remedies fell about 77% between the Atkins and Gensler chairmanships, to $181.5 million from $783.6 million, but one $539.4 million order made up about 69% of the Gensler total, and remedies in federal court nearly doubled.
Executive Summary
The Securities and Exchange Commission’s (SEC’s) approach to crypto assets has evolved considerably over the past several years. A comparison of the first 18 months of Gary Gensler’s and Paul Atkins’ chairmanships provides an empirical perspective on how the agency’s enforcement activity has changed. In this article, “A Tale of Two Chairmanships: The First 18 Months of SEC Crypto Enforcement,” published in Cryptoweek, Director Simona Mola examines differences in enforcement volume, the nature of alleged violations, the use of administrative proceedings versus federal court litigation, and the monetary remedies ordered during each period.
The comparison of the Gensler and Atkins chairmanships highlights a shift in the SEC’s approach to crypto enforcement. Under Atkins, enforcement activity has become more targeted, with fewer actions and greater emphasis on fraud-related litigation rather than standalone registration violations. Although overall remedies have declined, federal court awards have increased. Together with ongoing regulatory initiatives, these trends suggest an evolving approach to crypto markets in which regulatory clarification and enforcement litigation serve complementary roles.
How NERA Can Help
As the SEC’s approach to crypto enforcement continues to evolve, market participants face a changing regulatory and litigation landscape. NERA’s expertise in securities enforcement, financial economics, and digital assets can help clients navigate these developments and assess their potential implications. NERA economists provide independent economic analysis in regulatory investigations and litigation, including evaluating allegations of fraud, market manipulation, and securities law violations. Through rigorous analysis of transaction data, trading behavior, and market dynamics, NERA helps clients address complex questions of liability, causation, and economic impact.
With enforcement activity increasingly concentrated in federal court and focused on fraud-related allegations, NERA can support clients throughout the litigation process, from initial investigations to expert testimony and settlement. NERA economists apply quantitative methods to assess investor losses, damages, disgorgement, and other monetary remedies, while helping clients evaluate regulatory risks and the economic implications of emerging crypto regulations. By combining deep financial expertise with experience in regulatory enforcement and complex securities litigation, NERA provides clients with objective, data-driven insights to navigate an evolving crypto market.
