Regulatory Pressure from the SEC is becoming a Fixed Cost for Crypto Companies, Impacting Innovation

ChainCatcher reports, citing Blockworks, that regulatory actions led by SEC Chair Gary Gensler are becoming a constant cost of doing business for crypto companies. This could potentially impact the industry's pace of innovation and the development of new projects.

As previously reported by ChainCatcher, the US Securities and Exchange Commission (SEC) reached a settlement with crypto lending platform Rari Capital. The SEC alleged that Rari's token constituted an unregistered security and questioned the authenticity of its automated rebalancing mechanism. Over the past year, at least a dozen crypto-related companies, including Uniswap Labs, eToro, and Binance, have reached settlements with regulators, collectively paying over $4.3 billion in fines.