With Cryptocurrency In Regulators' Crosshairs, What's Next For The Industry?

Scrutiny of the cryptocurrency industry continues to grow, with both state and federal regulators arguing that more needs to be done to protect investors. On October 19, 2023, the New York Office of Attorney General filed suit against cryptocurrency companies Gemini Trust Company (Gemini), Genesis Global Capital, LLC, and its affiliates (Genesis), and Digital Currency Group, Inc. (DCG), alleging that the companies defrauded investors out of more than $1 billion.

Separately, the Securities and Exchange Commission (SEC) Chair Gary Gensler made it clear that the SEC also isn't taking its foot off the accelerator when it comes to crypto enforcement. In a speech delivered on October 25, 2023, at the 2023 Securities Enforcement Forum, Gensler highlighted the SEC's crypto enforcement successes and vowed to continue pursuing bad actors. "This is a field rife with fraud, scams, bankruptcies, and money laundering," he said. "It's reminiscent of what we had in the 1920s