SEC Drops Crypto Lawsuits to Protect Credibility

SEC Commissioner Mark Uyeda has revealed that the agency dropped some crypto lawsuits to protect its credibility. Speaking on September 23, Uyeda explained that regulators should not defend legal positions they expect to abandon, as this could weaken confidence in the agency if its interpretation later changes.

In a shift from the previous administration's approach, the SEC is now moving towards rulemaking and temporary regulatory relief for parts of the crypto market. This change has been described by Uyeda as a '180-degree shift' in how the SEC handles crypto-related legal questions.

The agency has recently introduced the Innovation Exemption, which allows certain onchain venues to trade tokenized U.S. stocks under specific conditions. This temporary framework is seen as a pilot program, enabling the SEC to observe how these markets operate while considering longer-term rules.