Penalties and refunds of $8.2 billion were recorded in the fiscal year ending September 30. This record is largely due to a $4.5 billion deal with crypto company Terraform Labs.

In the SEC’s annual report published on November 22, it was stated that the total number of cases for 2024 was 583, a 26% decrease compared to the previous year. But the agency’s financial returns have outpaced previous years, with $2.1 billion in fines and $6.1 billion in restitution collected.

“The Enforcement Division is a watchdog that holds wrongdoers accountable, in accordance with the law and the evidence,” said SEC Chairman Gary Gensler.

More than half of the SEC’s total revenue came from the $4.47 billion it received from Terraform Labs and its former CEO Do Kwon. This lawsuit was initiated after billions of dollars in losses with the collapse of Terraform’s blockchain ecosystem in 2022.

Without Terraform’s deal, the SEC’s total revenue in fiscal 2024 would remain at $3.72 billion. This would be the agency’s lowest financial return since 2013.
The SEC, under the leadership of Chairman Gensler, has taken a harsh stance against the crypto industry. The agency, which filed 46 crypto cases in 2023, reduced this number to 11 in 2024. However, the Terraform Labs case increased the total value of crypto-related fines by over 3,000%.

President Gensler will complete his term on January 20, 2025, and newly elected President Donald Trump will take office on the same day. Now that Trump has promised to ease regulatory sanctions, the SEC’s pressure on the crypto industry is expected to ease. This is being closely monitored throughout the industry.

Pantera Capital’s general counsel, Katrina Paglia, said last week that the SEC expects many ongoing crypto cases to “quietly close” during Trump’s second term. With Trump taking office, it is predicted that the regulatory pressure on the crypto industry will ease.

The impact of the Terraform Labs case is not limited to the increase in SEC fines. This case could set a new precedent for how crypto companies should cooperate with regulators. However, concerns remain among investors about the future of greater regulatory oversight in the crypto sector.

As the crypto market continues to fluctuate under the influence of the regulatory environment, Terraform Labs’ settlement with the SEC continues to attract attention across the industry. In particular, it is a matter of curiosity how this agreement will shape future regulatory frameworks and affect the operations of crypto companies.

The SEC’s record revenues in fiscal 2024 reflect the impact of the agency’s enforcement efforts and its tough stance on regulatory noncompliance in the crypto industry. However, a change of administration and Trump’s promises may change the direction of this harsh regulatory policy. The sector hopes for a more flexible regulatory environment in the new period.