US crypto regulations cost industry more than $400M: Report

​​​​​​​By Ovunc Kutlu

ISTANBUL (AA) - US cryptocurrencies regulations have cost the industry more than $400 million, a report claimed Thursday.

Under he US Securities and Exchange Commission (SEC) Chair Gary Gensler, "the digital asset industry found itself an outsized target of a hostile SEC, receiving more than 100 enforcement actions through 2023," said the report by Blockchain Association.

In addition to the $400 million defending itself against SEC, there were untold losses of jobs, innovation, and investment, it said, including nearly 100 members of the sector's leading investors, companies and projects.

Nominated by President Joe Biden, Gensler took the helm of the regulatory agency in April 2021 and was known for his tough stance on the crypto industry.

A rally in cryptocurrencies came this week before the highly anticipated US presidential election as investors' optimism is building amid hopes of regulatory loosening on cryptos regardless of the outcome of the race.

"According to polling, more voters believe that the U.S. has taken the wrong rather than right approach toward crypto and that the SEC has been too heavy handed – voters prefer clear rules and regulation over enforcement by a factor of two-to-one," said the report.

"Neither political party currently 'owns' the crypto issue, but voters say they are more likely to support and back candidates who encourage innovation in the digital asset space. In fact, crypto voters make up 18% of the electorate and are even more winnable than other voters on issues concerning an overreaching SEC," it added.

Alex Chizhik, chief commercial officer of HarrisX, a market research and data analytics company, said the report shows that crypto owners and the crypto industry are not against regulations.

"They are against being singled out by a regulator aiming to score political points," he said. "Our analysis of the SEC’s action clearly shows undue penalties and an undue focus on this specific industry."