SEC Dropped Crypto Lawsuits to Prepare for Sweeping Policy Shift
The US Securities and Exchange Commission (SEC) dropped its crypto lawsuits last year as part of preparations for a sweeping policy shift, according to Commissioner Mark Uyeda. The agency's decision was aimed at avoiding conflicting court positions with its new regulatory approach.
Uyeda stated that there were serious doubts about the legal basis for existing crypto lawsuits and that continuing to pursue them would have damaged the SEC's credibility. He served as acting chair from January to April last year, during which time the agency dropped a series of high-profile cases against major crypto companies including Kraken, Ripple Labs, and Coinbase.
The decision drew criticism from some quarters, with accusations that it was a reward for the crypto industry's support for President Donald Trump during his 2024 presidential campaign. However, Uyeda emphasized that the SEC's move was not motivated by politics, but rather a desire to prepare for a fundamental shift in its regulatory stance.
The SEC is currently operating with only three commissioners: Chair Paul Atkins, Uyeda, and Hester Peirce. Peirce is set to leave in November, which could leave the agency with just two members. However, Trump has yet to announce a successor to fill the vacant position.