SEC Drops Inherited Crypto Cases Amid '180-Degree Shift' in Legal Position

SEC Commissioner Mark Uyeda addressed the agency's handling of inherited crypto cases during a recent conference at Georgetown University. He explained that some of these cases were dropped due to the SEC's change in legal position, which he described as a '180-degree shift'. This shift could undermine the agency's credibility in court if they continued to defend positions they planned to reverse.

Uyeda noted that this issue arises when an agency changes its interpretation of a legal issue while related cases are still pending. If SEC lawyers continued defending the earlier interpretation in court and the commission later adopted a different position, it could create questions about the consistency of their arguments.