In recent years, US regulators have stepped up measures against cryptocurrency companies, resulting in settlements totaling nearly $32 billion.

Increase in Regulatory Actions post-FTX Collapse

US regulators have significantly stepped up regulatory enforcement against cryptocurrency companies, resulting in settlements of nearly $32 billion with industry representatives. These efforts have become more pronounced following the collapse of crypto exchange FTX, demonstrating the government’s increasing focus on the digital asset market. More than half of all settlements were reached in the past two years, highlighting a targeted effort to address possible violations, improve consumer protections, and reduce risks to financial stability.

FTX and Alameda: Record Settlements

One of the most significant regulatory actions involved bankrupt crypto exchange FTX and affiliated trading firm Alameda Research. The Commodity Futures Trading Commission (CFTC) led the process, reaching a settlement of $12.7 billion in August 2024. This occurred less than two years after the collapse of FTX.

Current Trends and Implications

Recent regulatory measures have resulted in 16 settlements totaling over $30 billion since 2022. This underscores the government’s perseverance in enforcing laws in the rapidly evolving digital currency sphere and enhancing protections for market participants.

US regulators' actions underline their commitment to ensuring stability and security in the cryptocurrency market. These measures signal the beginning of a new era of stricter regulation in the world of digital assets.