SEC Enforcement Actions Up 9%, Reaching 760 Actions In 2022

Key points:

• The SEC is still taking strong actions to accomplish its goal of controlling the cryptocurrency market.
• In 2022, the agency’s total assets increased by $1.9 billion, and accounts receivable increased by $1.5 billion, most of which included foreclosure income.
• The SEC launched 760 enforcement actions in fiscal year 2022, up 9% from the previous year.

According to data from the SEC’s balance sheet, according to the annual report for fiscal year 2022, the total assets of the SEC have increased from $12.2 billion to $14.1 billion, an increase of $1.9 billion. Among them, the investment account increased by $400 million; accounts receivable increased by $1.5 billion. Most of these two include foreclosure income and investment accounts deducting expenditures during monitoring.

In addition to fines and forfeitures, OMB’s 2022 budget for it’s reserves is $50 million, and the investor protection budget is $390 million; SEC transaction fees are about $1.8 billion; and the registration fee is $640 million. Foreclosure income has become a kind of [pillar income].

These enforcement actions have resulted in high revenue: Ordered payments totaled $6.439 billion, including civil penalties, forfeiture, and pre-judgment interest, the highest in its history and up from $3.852 billion in Fiscal Year 2021. Civil fines amounted to $419.4 million of the total amount transferred, which is also a record high.

Looking at income and then spending, it can be seen that the net expenditure of the Law Enforcement and Inspection Division was the highest, reaching a total of $1.75 billion, accounting for 65% of total expenses. That spending eventually translated into enforcement actions: According to another public SEC paper, it issued 760 enforcement actions in the fiscal year 2022, up 9% from the previous year. That includes 462 new or “standalone” execution actions.

In fiscal year 2022, the SEC issued approximately $229 million out of 103 rewards. The amount and number of rewards rank second in history. The number of annual reports also ranks first in history, and the agency has received 12,300 reports. Gensler’s request for resources from this regulator during the hearing also made sense, given the increase in headcount from 4,685 to 5,139.

Accordingly, the acts of this regulator become more understandable as many people come in and act the way possible, then investigate, gather evidence, prosecute and punish as much as possible. Therefore, it is unsurprising that the agency accuses the mass of tokens as unregistered securities. Expanding the law enforcement audience is the first step. Of course, in the end, whether or not law enforcement is chosen and whether a prosecution is established depends on many factors.

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