The US Securities and Exchange Commission (SEC) announced that Terraform Labs PTE, Ltd. and Do Kwon have agreed to pay over $4.5 billion.SEC Chairman Gary Gensler stated: "This case confirms the repeated fact that the economic substance of a product, not labels, promotion, or hype, determines whether it is a security under securities laws. Terraform and Do Kwon's fraudulent conduct reminds us that investors are harmed when companies break the law."

The United States Securities and Exchange Commission “is serious about the destruction of digital assets,” according to cryptocurrency exchange Coinbase.

Coinbase institutional research analyst David Han believes “there is room for surprise to the upside on this decision.”

US Senator Elizabeth Warren expressed support for SEC Staff Accounting Bulletin (SAB) 121 during a recent Senate hearing. Warren stated that the standard applies to companies dealing with cryptocurrency business, and aims to provide accounting guidance on how companies should consider risks related to cryptocurrency and disclose these risks in their disclosures. Related risks include hacking, theft, and the loss of cryptocurrency when protecting the company from bankruptcy.Warren added that the standard does not require cryptocurrency platforms to add customers' cryptocurrency to their balance sheets - a statement that contradicts the claim made by Patrick McHenry, Chairman of the House Financial Services Committee, who previously stated that the bill "requires financial institutions and companies that protect customer digital assets to retain these assets on their balance sheets." In addition, this standard does not make the platform the owner of its customers' cryptocurrency. (CryptoSlate)Yesterday, the US Senate voted 60-38 to overturn a resolution on SEC SAB 121, but the resolution may be vetoed by President Biden's desk. It is reported that the SEC's previously issued Staff Accounting Bulletin 121 SAB 121 requires companies to record their holdings of cryptocurrency assets on their balance sheets, but critics argue that this provision is too stringent and essentially hinders major custodial institutions and companies from holding cryptocurrency assets for their clients.

On May 18th, it was reported that the US SEC is preparing to announce at least one decision regarding an Ethereum spot ETF application before next week. According to two sources, some fund companies are expected to be rejected because their private conversations with the SEC are not as frequent as they were before the Bitcoin spot ETF approval in January of this year.

On May 12th, billionaire Mark Cuban criticized the cryptocurrency regulatory approach of US SEC Chairman Gary Gensler on X platform. He stated that Gensler's position may alienate voters who are interested in cryptocurrency, which could affect Joe Biden's election prospects. He said that if Biden fails in the upcoming November election, you may very well thank Gensler and the SEC New York office. What he (Gensler) has done is make it nearly impossible for legitimate cryptocurrency companies to operate, killing countless businesses and ruining countless entrepreneurs.

Jennifer Lee, former Assistant Director of Enforcement at the SEC, said that if Donald Trump is re-elected, it may not change the SEC's stance on cryptocurrency. Lee told CNBC that the SEC "vigorously pursued cryptocurrency cases" during Trump's first term as president and brought "sunshine and regulation" to this emerging industry. If Trump is re-elected for a second term as president, the SEC will continue to "define its space and enter the cryptocurrency field." The SEC's jurisdiction over specific cryptocurrencies is more consistent, but its jurisdiction over the industry as a whole remains an unresolved issue.

The SEC proposed that Do Kwon and Terraform pay roughly $5.3 billion in disgorgement, prejudgment interest and civil penalties, while the firm’s team suggested only $1 million.

The SEC has filed an amended lawsuit against Tron founder Justin Sun, claiming that he traveled extensively throughout the US and took actions directed towards the country. The SEC argues that this gives them enough "personal jurisdiction" over Sun, Tron, and two other businesses linked to him. The amended filing also alleges that Sun spent at least 380 days in the country between 2017 and 2019 on business trips representing the Tron Foundation and his alter ego firms. Sun had previously sought to dismiss the SEC's original lawsuit in March, but the allegations remain unchanged.

The U.S. SEC Wells notice against Uniswap raises questions about consistency in policy enforcement.