Regulatory pressure on the US crypto sector has greatly eased since President Donald Trump returned to power. The Securities and Exchange Commission's enforcement priorities have changed, with crypto companies now facing far fewer lawsuits than in previous years.
In brief
- The SEC has dismissed or suspended nearly 60% of crypto-related cases since January, while enforcement remains active in traditional markets.
- High-profile lawsuits against Ripple Labs and Binance have slowed, reflecting a broader retreat from aggressive crypto oversight.
- The regulator denies any political influence, despite no pending cases targeting Trump-linked companies.
- Leadership changes loom as Democratic Commissioner Caroline Crenshaw prepares to leave, raising questions about future oversight.
SEC Denies Political Influence as Digital Asset Cases Dropped
A report published Sunday by The New York Times shows that the SEC has dismissed or suspended nearly 60% of its crypto-related cases since January, signaling a clear shift in approach. The app remains active in stocks, bonds and other traditional markets, but crypto business has seen a higher rate of withdrawals and delays. Digital asset companies now represent a large share of cases set aside or abandoned entirely, according to the report.
Several high-profile lawsuits illustrate this decline. Long-running cases against Ripple Labs and Binance, once considered central to the SEC's crypto enforcement efforts, have slowed. Court records show reduced activity, extensions or dismissals related to changing internal priorities.
Reports indicate that no active SEC cases currently target companies with known ties to Trump. This detail has raised questions about impartiality, although SEC officials have denied any political influence, saying decisions are based on legal and political considerations. No evidence has been presented that Trump personally ordered a case dropped.
Industry denies political motives behind SEC's reduction in crypto oversight
Industry figures argue that the change reflects frustration with previous enforcement tactics rather than favoritism. Alex Thorn, head of corporate research at Galaxy Digital, said critics overlook years of regulation he says was uneven and aggressive. Thorn added that claims of political motivations ignore the pressure exerted under a previous administration.
Several developments have shaped the current application atmosphere:
- Nearly 60% of crypto-related cases handled by the SEC have been dismissed or suspended since January.
- Major lawsuits against Ripple Labs and Binance have slowed.
- No active cases involve companies linked to entities associated with Trump.
- SEC leadership denies any political influence behind the decisions.
- Industry players cite long-standing regulatory inconsistency.
Companies linked to Trump have increased their presence in digital assets throughout 2025. Projects associated with the president or his family include World Liberty Financial, the official Trump memecoin, and American Bitcoin, a mining company backed by Trump's sons. These companies have attracted increased scrutiny as enforcement activity has slowed.
Leadership changes at the SEC could reinforce this shift. Paul Atkins, a Republican appointee seen as more pro-market, is expected to remain president. At the same time, the commission is about to lose its last Democratic member.
Caroline Crenshaw, whose term expired in 2024, is expected to leave in January after staying beyond her term. Trump has not named replacements for his seat or any other Democratic vacancy. Crenshaw has criticized the softer approach to crypto, warning last week that weaker oversight could expose investors to greater risk and allow instability to spread through financial markets.
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