The U.S. Securities and Exchange Commission (SEC) has intensified its scrutiny of the cryptocurrency sector, targeting token issuers, exchanges, NFT platforms, crypto-focused banks, and advisory firms. The SEC's actions have raised concerns about the definition and regulation of 'crypto asset securities.' Recently, the SEC fined a crypto investment firm for holding tokens in Fireblocks, citing the lack of 'qualified custodians' for most tokens. This has led to criticisms that the SEC's requirements are unrealistic, as the agency itself acknowledges that qualified custody doesn't exist in the crypto space. Additionally, the SEC has been criticized for not identifying major frauds like the one involving FTX, while penalizing firms for using such platforms. The regulatory environment has made it challenging for crypto-related projects to operate in the U.S., as they must navigate complex and often contradictory regulations. Galois Capital was specifically mentioned in an SEC order, and SAB 121 has been cited as a problematic regulation. Coinbase has also been identified as a potential single point of failure due to its role as a custodian for many crypto ETFs.