SEC Sanctions

Definition ∞ SEC sanctions are punitive measures imposed by the U.S. Securities and Exchange Commission on individuals or entities found to have violated federal securities laws, particularly in connection with digital assets. These penalties can include fines, disgorgement of ill-gotten gains, injunctions, or bans from participating in securities markets. They serve to enforce compliance, deter misconduct, and protect investors. Such actions underscore regulatory authority.
Context ∞ SEC sanctions have significantly shaped the regulatory landscape for digital assets in the United States. Many enforcement actions have centered on the classification of certain cryptocurrencies as unregistered securities offerings. These sanctions provide a form of “regulation by enforcement,” offering clarity on the agency’s stance on various crypto activities. The industry closely monitors these actions for their precedent-setting implications and guidance on compliance requirements.