The momentum has shifted in the yearslong battle between top crypto companies and protocols and the U.S. Securities and Exchange Commission under the new Trump administration.
The regulator, which now has a crypto task force led by longtime industry advocate Hester Peirce, is moving away from what Pierce and others have called “regulation by enforcement” to less hostile engagements with crypto.
Thus far, those words have rung true with the SEC recently backing away from fights with multiple top crypto companies. Here are the SEC’s biggest pivots, reversals, and exits so far under Trump.
Binance
Following a joint request, a U.S. district judge granted Binance a 60-day pause in its ongoing legal battle with the SEC, allowing both parties an opportunity to reassess the shifting regulatory landscape.
The stay is in effect until April 14, at which point both parties will need to submit a status report. And since the stay was granted, the SEC has ended many other investigations and lawsuits, which may hint at what to expect from the Binance resolution.
The exchange has dealt with alleged securities, money laundering, and sanctions compliance issues since at least 2023, which led to two separate settlements for $4.3 billion and $2.7 billion, respectively.
Crypto rulemaking case
On February 17, the SEC voluntarily dropped an appeal in a case revolving around the regulator’s previous attempts to extend securities laws to decentralized finance (DeFi) applications and users.
The appeal was made after a federal judge in Texas called the regulator’s expanded definitions unlawful, citing that it was conflating DeFi traders with financial brokers.
The dropped appeal ensures that DeFi protocols do not need to register with the SEC as securities exchanges, leading the Blockchain Association CEO Kristin Smith to call it a “complete and total victory.”
Coinbase
Leading American crypto exchange Coinbase had its lawsuit officially dismissed by the SEC in February.
The suit, which was filed in 2023, alleged that the platform knowingly operated as an unregistered securities exchange, specifically calling out tokens like Solana and Polygon in the process.
In its statement on the move, the Commission said that the decision “rests on its judgement that the dismissal will facilitate the Commission’s ongoing efforts to reform and renew its regulatory approach to the crypto industry.”
Prior to official approval, Coinbase Chief Legal Officer Paul Grewal said of the dismissal “there will be no settlement or compromise—a wrong will simply be made right.”
OpenSea
The SEC has ended its investigation into NFT marketplace OpenSea, the firm said in February, dropping charges that alleged it operated as an unlicensed securities brokerage. The platform indicated it received a Wells notice from the regulator in August 2024, signaling the SEC would take action against it.
“This is a win for everyone who is creating and building in our space,” said OpenSea CEO Devin Finzer. “Trying to classify NFTs as securities would have been a step backward—one that misinterprets the law and slows innovation.”
Robinhood Crypto
An SEC investigation into Robinhood—one which the platform claims should never have been opened—ended with no action taken by the regulator.
“As we explained to the SEC, any case against Robinhood Crypto would have failed,” said Robinhood’s Chief Legal, Compliance and Corporate Affairs Officer Dan Gallagher. “We appreciate the formal closing of this investigation, and we are happy to see a return to the rule of law and commitment to fairness at the SEC.”
The firm was notified of a potential enforcement action in May 2024 when it received a Wells notice from the Gary Gensler-led SEC.
Uniswap Labs
Uniswap Labs, the creator of Ethereum decentralized exchange Uniswap, said in February that the SEC has ended its investigation into the organization without filing any charges.
Like other leading crypto organizations, Uniswap Labs received a Wells notice in April 2024 which alleged it operated as an unregistered securities broker, exchange, and clearing agency, and that had enabled the sale of an unregistered security.
With the investigation said to be over, all of the aforementioned claims have now been dropped, said its CEO Hayden Adams.
“They went after us despite having no clear legal basis, as part of a strategy of arbitrary enforcement to try to force DeFi into a regulatory framework that doesn’t fit—all while refusing to provide clear rules or a path to compliance,” he posted on X. “This is a huge win, not just for Uniswap Labs but for DeFi as a whole.”
Gemini Trust
A two-year investigation into Gemini Trust about the unregistered sale of securities ended last week without an enforcement action from the Commission.
Gemini co-founder Cameron Winklevoss noted the milestone, but said that it “does little to make up for the damage this agency has done to us, our industry, and America.”
Winklevoss estimated that the regulator cost his firm “tens of millions in legal fees and hundreds of millions in lost productivity, creativity, and innovation.”
Justin Sun/Tron
Like Binance, Justin Sun and Tron filed a joint motion alongside the SEC to temporarily stay the regulator’s case in the hopes of finding a resolution.
The case stems back to 2023 when the SEC alleged that Sun made more than 600,000 wash trades to create misleading Tron (TRX) volumes that led to around $32 million in profits. The joint filing indicates a resolution would be beneficial on account of “conserving judicial resources.”
Consensys
MetaMask and Linea parent company, Consensys, said that the Commission has agreed to put an end to its lawsuit against the company, which focused on staking features within MetaMask.
The dismissal has been agreed to in principle, but requires approval from commissioners—similar to the regulator’s activity with Coinbase.
“We were committed to fighting this suit until the bitter end but welcome this outcome,” said Consensys founder and CEO Joseph Lubin on X. “Now we can get 100% back to building. 2025 is going to be the best year yet for Ethereum and Consensys.”
(Disclosure: Consensys is one of 22 investors in an editorially independent Decrypt.)
Edited by James Rubin
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