A Shift in the SEC’s Approach to Crypto
Things are changing at the SEC. Under the new administration, the agency seems to be stepping back from its aggressive stance toward crypto companies. Instead of lawsuits and enforcement actions, there’s been a noticeable shift toward negotiation—or at least, dropping cases altogether.
It’s a big deal, especially after years of high-profile legal battles. The SEC’s crypto task force, led by Hester Peirce, appears to be steering things in a different direction. Whether this lasts or not is another question, but for now, several major cases have quietly fizzled out.
Ripple and Binance: Two Major Cases Closed
The Ripple lawsuit, which dragged on for four years, finally ended in August. The SEC had accused Ripple of selling unregistered securities through XRP, but after a partial court win for Ripple in 2023, the agency backed off its appeal. Ripple’s CEO called it a “long overdue surrender” from the SEC—strong words, but maybe not entirely wrong.
Then there’s Binance. The SEC dropped its case against the exchange in May, just months after both sides agreed to pause the litigation. Binance had already settled other legal issues, paying billions in fines over money laundering and sanctions violations. But this was different—a sign that the SEC might be rethinking its strategy.
Smaller Wins for DeFi and Exchanges
Coinbase, Uniswap, and Kraken also saw their cases dismissed. For Coinbase, it was a quick end to a lawsuit that accused the exchange of operating illegally. Uniswap, a decentralized platform, got off without any charges despite earlier warnings from the SEC. Kraken, meanwhile, walked away without fines or admissions of wrongdoing.
Even NFT projects like OpenSea and Yuga Labs (creators of Bored Ape Yacht Club) are in the clear now. The SEC had questioned whether NFTs could be classified as securities, but those investigations closed with no action.
What’s Behind the Change?
It’s hard to say for sure. Maybe it’s the new leadership. Maybe it’s pressure from the industry. Or maybe the SEC just realized it was fighting too many battles at once.
Some, like Gemini’s Cameron Winklevoss, aren’t ready to celebrate. He pointed out that even though his company’s investigation ended, the legal battles cost them millions. Others, like Uniswap’s Hayden Adams, see it as a win for the entire crypto space.
Either way, it’s a noticeable shift. Whether it’s permanent—well, that’s another story. For now, though, a lot of crypto companies are breathing easier.
