Under Gary Gensler’s past leadership, the U.S. Securities and Exchange Commission (SEC) has made its priorities clear: cracking down on American blockchain companies instead of addressing real threats to investors. Ripple, Coinbase, and Uniswap have all found themselves in the agency’s crosshairs, facing lawsuits and regulatory roadblocks that have stifled innovation.

We have just witnessed the most significant cyberattack, with $1.5 billion in Ethereum stolen from Bybit in one of the largest crypto heists in history.

The attack, orchestrated by the Lazarus Group, a notorious North Korean hacker syndicate, should have been a wake-up call for regulators. A shift in the SEC’s approach to crypto is needed. The American public does not want the usual rhetoric: crypto is dangerous, exchanges are reckless, and tighter regulations are the only answer. We demand clear regulation to innovate and thrive and an instrument of government to spearhead an offensive against foreign criminal elements, a known weak spot in our strategy to protect the American public. So here’s the real question: Why is the SEC spending its time suing American blockchain businesses while hackers walk away with billions?

The Bybit Hack & SEC Negligence: A Wake-Up Call for the SEC

The Lazarus Group, a cybercriminal syndicate tied to the North Korean government, has been behind some of the most high-profile crypto heists in history. Their exploits finance a rogue state, fund weapons programs, and destabilize global financial security. And yet, while Lazarus continues to infiltrate major exchanges, the SEC is too busy attacking companies trying to build a legitimate digital asset industry.

Bybit, an offshore exchange, became the latest victim. A $1.5 billion breach should have triggered an urgent government-led cyber response. To focus on much else is missing the point.

The SEC’s mission should not be to obstruct innovation—it should be to protect American investors and companies. The best way is to weaponize regulation against criminals, not entrepreneurs.

The SEC’s Role: From Crypto Cop to Cyber Warfare Leader

Imagine a different SEC. Instead of dragging American companies into legal battles, the agency would redirect its focus toward cybercriminals who pose a threat. What if the SEC worked alongside the Department of Justice (DOJ), the FBI, and global intelligence agencies to actively hunt down hacker groups like Lazarus?

Other financial watchdogs already trace and freeze illicit funds. But why stop there? The SEC could establish an elite cyber task force dedicated to:

  1. Tracking and Seizing Stolen Crypto: Leveraging blockchain forensics to recover and return illicit funds to victims.
  2. Launching Counter-Cyber Operations: Actively disrupting hacker networks, deploying cybersecurity offensives to neutralize threats.
  3. Collaborating with International Allies: Working with other nations’ financial regulators to prosecute cybercriminals.
  4. Fortifying Crypto Infrastructure: Implementing security standards that prevent attacks rather than punishing victims afterward.

If the SEC is going to be weaponized, let it be against North Korea’s Lazarus, global cybercriminals, and illicit actors, not the entrepreneurs building America’s future.

Regulation Shouldn’t Be a Weapon Against Americans

The message is clear: Crypto regulation should not be a war on innovation. It should be about security, protection, and ensuring America leads in the financial revolution of the 21st century. If the SEC truly wants to serve investors, it must shift its focus away from strangling innovation and toward fighting real cybercrime.

The SEC’s Expanded Role: A Globalized Battlefield

The Bybit hack wasn’t just another attack—it was a $1.5 billion wake-up call. Financial markets have long been global, and cyber warfare is no different. The SEC, with its stated mission of protecting American investors and ensuring market integrity, must evolve beyond outdated regulatory frameworks to become an active player in the defense against foreign cyber threats.

If the SEC is serious about protecting the financial interests of Americans, it must recognize that financial security is no longer limited to Wall Street. Digital assets, exchanges, and decentralized platforms operate on a global battlefield. The agency should work in tandem with cybersecurity forces, intelligence agencies, and allied nations to combat financial terrorism in the digital age.

The SEC’s jurisdiction should extend beyond courtroom battles against American companies and into the realm of cyber defense, counter-offensive operations, and digital asset recovery. This means utilizing blockchain analytics, deploying proactive cyber defense measures, and working with partners to dismantle international cybercrime rings.

The future of finance will not be won in lawsuits—it will be won in cyber warfare. The question is: Will the SEC keep fighting the wrong battle, or will it finally step up and become the force America needs to secure its financial future?

Follow me on X, Bluesky, or Medium to stay updated on the latest news, education, and great stories!

Note: Not financial advice. My stories are for educational purposes only. Consult a financial advisor before allocating assets to any investment vehicle.