SEC Abandons Major Crypto Enforcement Cases Under Trump Administration

The Securities and Exchange Commission has terminated 60% of its cryptocurrency-related enforcement actions since January 2025, marking a dramatic reversal of the agency’s regulatory approach under the Trump administration’s second term. The sweeping dismissals include high-profile cases against industry giants Coinbase, Binance, and Ripple, signaling the end of what crypto executives characterized as a years-long enforcement crackdown.

The $6.5M In Venture Funding To Expand AI-driven Blockchain Security Solutions”>blockchain-security-solutions/” title=”TestMachine Secures Over $6.5M In Venture Funding To Expand AI-driven Blockchain Security Solutions”>SEC‘s about-face represents one of the most significant regulatory shifts in the digital asset sector’s history. According to regulatory filings and industry reports, the commission has suspended, closed, or dismissed enforcement actions at a far higher rate in the cryptocurrency space compared to traditional securities cases, citing legal rather than political motivations for the decisions.

Among the most notable dismissals was the SEC’s case against Ripple Labs, which had been fighting allegations that its $1 Billion Milestone as Institutional Appetite Surges”>XRP token constituted an unregistered security. XRP currently trades at $1.90, down 1.17% in the past 24 hours but maintaining its position as the fifth-largest cryptocurrency by market capitalization at $115.1 billion. The token’s market dominance stands at 3.87% within the broader $2.97 trillion cryptocurrency market.

The regulatory reset extends beyond individual enforcement cases. The SEC has rescinded stringent cryptocurrency accounting guidance that had created compliance burdens for digital asset companies, while simultaneously dismissing Biden-era lawsuits that had sought to classify various crypto tokens as securities requiring registration with the agency.

Coinbase, which faced enforcement action over its staking services and broader business practices, saw its legal challenges evaporate alongside dozens of other crypto firms. The exchange has capitalized on the regulatory reprieve by expanding into traditional asset classes, recently launching stock trading and prediction markets to complement its cryptocurrency offerings.

Industry executives expressed relief at the regulatory shift but cautioned that fundamental legislative reforms remain incomplete. Multiple crypto leaders speaking at industry events have warned that the celebratory mood could dissipate if comprehensive market structure legislation fails to materialize, leaving core regulatory uncertainties unresolved.

The dismissals follow a pattern noted by legal analysts, where five out of seven abandoned crypto cases involved defendants with ties to Trump family businesses or those who had donated to his political causes or inauguration. The SEC has denied any political motivation behind the enforcement pullback, emphasizing legal considerations as the primary driver.

Market participants have responded positively to the regulatory clarity, with crypto stocks experiencing renewed investor interest. Deutsche Bank recently initiated coverage of Coinbase with a “Buy” rating and $340 price target, citing the company’s evolution into a broader financial services platform as Bitcoin dominance remains steady at 59.1% of the total crypto market.

The enforcement retreat marks a stark contrast to the previous administration’s aggressive stance toward digital assets. Under the Biden SEC, the agency pursued dozens of crypto companies with allegations of securities violations, creating what industry advocates described as regulatory uncertainty that stifled innovation and growth.

Looking ahead, crypto industry observers remain cautiously optimistic about the regulatory environment but emphasize the need for comprehensive legislation to address longstanding structural issues. Without clear statutory frameworks governing digital asset markets, the industry faces potential vulnerability to future regulatory shifts depending on changing political winds and agency leadership.