SEC Dropped Crypto Cases to Avoid Credibility Hit
Mark Uyeda, who served as acting chair of the US Securities and Exchange Commission (SEC) from January to April 2025, revealed that the agency dropped civil cases against cryptocurrency companies in early 2025. The decision was made to avoid hurting the SEC's credibility by arguing positions in court contrary to its planned policy changes.
According to Uyeda, there were 'significant concerns' about the justifiability of the cases under law. He stated that it would have been problematic for the agency's litigators to argue for a 180-degree change from their previous stance in court.
The SEC dropped cases against Kraken, Ripple Labs, Coinbase, and others, which many critics characterized as payback for the industry's support of President Donald Trump's 2024 campaign. Trump had promised to fire former SEC Chair Gary Gensler 'on day one' if elected, and Gensler resigned after Trump took office.
The decision has sparked concerns about the agency's independence and its ability to make decisions based on law rather than politics.