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The US Securities and Exchange Commission has sharply reduced enforcement against cryptocurrency firms since President Donald Trump took office in January. This pullback stands out against continued action in traditional securities markets.
Data cited by The New York Times shows the SEC dropped, paused, or dismissed about 60% of crypto-related cases and investigations. Enforcement in other securities areas continued without major disruption. Several high-profile lawsuits were stalled or ended during the shift. These included cases against Ripple Labs and Binance, which once defined the agency’s aggressive stance on crypto.
The change raised questions about consistency in regulatory oversight. Why did crypto enforcement slow while other securities actions continued at the same pace?
The SEC’s cases against Ripple Labs and Binance will no longer move forward after January. Both matters had symbolized years of strict enforcement toward digital asset firms.
At the same time, the agency dropped its lawsuit against Coinbase after it spent months challenging the SEC’s demands during the dispute. As these cases paused or ended, firms once under pressure gained regulatory breathing room.
The shift marked a clear change from earlier courtroom-heavy strategies. The Times also reported the SEC has stopped pursuing cases involving firms with known Trump ties, intensifying scrutiny around enforcement decisions.
A pattern has emerged among dismissed crypto cases. Several involved firms or executives have financial or political ties to Trump or his donors. The Winklevoss twins became a prominent example; the Gemini Trust founders have donated to Trump's fundraising efforts and supported construction projects at the White House. They have also invested in ventures with Trump’s sons, Eric Trump and Donald Trump Jr.
Nonetheless, the SEC stated that these decisions reflected changes in legal strategy. The agency has emphasized how politics played no role in enforcement priorities.
The SEC attributed the pullback to evolving interpretations of the law and policy goals. Officials pointed to prior courtroom losses and reassessment of litigation risk. The Times found no evidence that Trump personally pressured the SEC to abandon cases. Instead, internal reviews drove the shift in regulatory scope.
Leadership changes now loom over the agency. Republican commissioner Paul Atkins is expected to remain chair for several years. Meanwhile, Democratic commissioner Caroline Crenshaw plans to leave in January after serving about 18 months beyond her original term.
At publication, Trump did not name replacements for Crenshaw or the vacant Democratic seat. The commission’s balance remains in transition.
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The SEC reduced crypto enforcement after January, as many cases were dropped or paused. High-profile actions against Ripple and Coinbase were stalled, with the agency citing changes in legal strategy while denying political influence.
This shift marks an apparent change from earlier aggressive oversight, signalling a new regulatory phase for crypto firms.
