Although regulators often target projects inside and outside the encryption field, the fines imposed on digital asset exchanges are only a small part of the fines imposed on traditional financial institutions.
According to Good Jobs First’s violation tracker, the platform analyze In the past 20 years, the 50 largest regulators imposed fines on major banks, investment companies, and brokers. Bank of America has accumulated approximately US$82 billion, covering 251 different fines, including securities violations. JPMorgan Chase and Citigroup have also been the most fined banks in the US since 2000, with total fines of US$35.9 billion and US$25.5 billion, respectively. .
Although major banks and cryptocurrency exchanges are often punished for securities violations, data shows that the enforcement actions of U.S. regulators in the cryptocurrency field make these companies cost less than 1% of the traditional financial sector. Cointelegraph previously reported that from 2009 to early 2021, Fines for crypto-related violations In the United States, the total fines are US$2.5 billion, and Good Jobs First data shows that banks, investment companies and brokers have imposed fines of US$332.9 billion in the past 20 years.
The U.S. Securities and Exchange Commission (SEC) took one of the biggest actions against Telegram’s 2018 ICO. After being accused of violating securities laws, the company was ordered to pay $1.2 billion in illegal gains and $18.5 million in civil fines in 2020. In contrast, Bank of America became the highest penalty target of the Justice Department-$16.6 billion for selling “toxic” mortgages related to the 2008 financial crisis.
In cases involving the US Securities and Exchange Commission, the Commodity Futures Trading Commission, and the Financial Crime Enforcement Network against crypto companies and individuals, unregistered securities issuance and fraud accounted for more than 90% of all fines. As described by Good Jobs First, “toxic securities abuse” accounted for approximately 29% of the total fines of US$332.9 billion, or US$97 billion. Investor protection violations ranked second with US$68 billion.
Although crypto companies continue to be the targets of enforcement actions by U.S. regulators-in August, BitMEX Agreed to pay up to 100 million U.S. dollars In order to resolve the CFTC and FinCEN cases-there are signs that the country’s lawmakers are increasingly aware of the economic impact of the lack of clear guidelines for innovative companies.Many U.S. Senators and Representatives Behind the proposal to modify the language Into the infrastructure of the Senate this month. The legislation proposes to implement stricter rules for companies handling cryptocurrency and expand reporting requirements for brokers.