SEC Scales Back Crypto Enforcement, Drops High-Profile Lawsuits

The agency, under new leadership, is retreating from aggressive litigation against cryptocurrency firms while signaling a shift toward clearer regulations.

The SEC has dismissed or paused multiple crypto-related lawsuits, including cases against Coinbase, Binance, and ConsenSys, reflecting a major policy shift under the Trump administration.
The agency’s new Crypto Task Force, led by Commissioner Hester Peirce, aims to replace 'regulation by enforcement' with clearer regulatory guidelines for the crypto industry.
Ongoing lawsuits against Ripple, Kraken, Cumberland DRW, and Pulsechain remain unresolved, with some cases potentially being amended or dropped based on fraud allegations.
Critics argue that the SEC’s retreat, following significant campaign contributions by crypto firms during the 2024 elections, raises concerns about regulatory impartiality.
The SEC has restructured its enforcement units, signaling a broader focus on emerging technologies while maintaining accountability for fraud and investor protection.