U.S authorities have collected more than $2.5 billion in penalties since Bitcoin came into existence. Data shows that majority of these penalties were collected by the SEC, while the Commodities Futures Trading Commission and FinCEN shared the rest. In total, the SEC has received $1.7 billion in penalties, CFTC $624 million, and FinCEN $183 million.
Data also shows that most of these penalties are related to the sale of unregistered securities. One of the most significant penalty payouts was by Telegram. Telegram pleaded guilty to offering unregistered security and was fined $18.5 million.
While this shows how tough of a stance U.S authorities have taken on crypto, industry players believe this is for the best of the industry. According to Dr. Tom Robinson, who is the co-founder of Elliptic, action by regulators is one of the ways that crypto is becoming legitimate in the eyes of investors.
There are even those who are calling for more regulations on the crypto market. One of them is Galaxy Digital founder Mike Novogratz. In May, Novogratz said that regulations would drive up the confidence of institutional players in the crypto market. That’s because institutional players invest billions of other people’s money and fear the risks that come with unregulated markets.
However, some feel that U.S regulations are simply too harsh. One of those who feels regulations in the U.S are unrealistic is Kraken CEO Jesse Powell.
While speaking to Fox Business in April, Powell stated that Kraken was weighing its options on whether to continue operating in the U.S. He said that U.S regulations were putting U.S exchanges at a disadvantage compared to their non-U.S competitors.