SEC Dropped Crypto Cases to Protect Credibility Amid Rule Change

Mark Uyeda, former acting chair of the US Securities and Exchange Commission (SEC), revealed that his agency dropped civil cases against cryptocurrency companies in early 2025. This decision was made to avoid issues with credibility, as the SEC was preparing a significant change in rulemaking under the new administration.

The cases involved several major players in the crypto industry, including Kraken and Ripple Labs. The agency's commissioner argued that there were 'significant concerns' about the justifiability of these cases under law.

Uyeda stated that he didn't want his litigators to argue positions in court that contradicted the planned policy changes, which would have damaged the SEC's credibility as an agency.