SEC Pulls Back on Crypto Lawsuits Under Under Trump Administration

TLDR

• The SEC has paused or dropped nearly 60% of crypto-related cases since President Trump returned to office in January 2025.
• High-profile lawsuits involving Ripple Labs and Binance have seen reduced enforcement activity during the current administration.
• The SEC stated its enforcement shift reflects legal and policy reviews, rejecting claims of political influence or favoritism.
• The agency is no longer pursuing cases tied to Trump-linked firms, according to a New York Times report.
• Upcoming SEC leadership changes, including Caroline Crenshaw’s expected exit, may further shape crypto oversight policy.

The U.S. Securities and Exchange Commission has paused or dropped nearly 60% of crypto-related cases since January 2025. High-profile actions against Ripple Labs and Binance are among those affected by the enforcement rollback. The agency denied political motivations, describing the shift as part of a broader policy reset.

High-Profile Crypto Lawsuits See Reduced Regulatory Pressure

According to a report by New York Times, the SEC has eased pressure on several ongoing investigations into crypto firms during President Donald Trump’s new term in office. Cases involving Ripple and Binance have seen reduced enforcement activity since the administration change. The agency has not confirmed any direct orders from the White House.

The Times reported the SEC is no longer pursuing any case involving companies with known ties to Trump or his family. This detail has led to increased criticism regarding the agency’s impartiality. However, the SEC responded that all decisions are based on legal assessments and not political interests.

A spokesperson said, “Our enforcement approach is shaped by legal analysis, not political influence or outside pressure.” The report said there is no evidence of Trump directing the agency to halt investigations. Industry observers suggest the shift reflects a reassessment of prior enforcement tactics.

SEC Leadership Changes May Further Influence Policy Direction

Changes at the top of the SEC could reinforce the agency’s new direction on digital assets. Caroline Crenshaw, the commission’s last Democratic member, is expected to step down in January 2026. Her departure follows the expiration of her official term in 2024. Crenshaw has criticized the SEC’s reduced focus on crypto oversight under the current administration.

Last week, she warned that weaker enforcement could increase risk across digital markets. She said, “Reduced scrutiny may lead to broader exposure for investors and weaken market protections.” Paul Atkins remains chair of the SEC and is viewed as supportive of market-led policies. Trump has not yet nominated replacements for the two open Democratic seats. The vacant roles could leave the commission without opposition to its current crypto approach.

In 2025, Trump-associated crypto ventures expanded, including the Trump memecoin and American Bitcoin mining. These developments have coincided with the SEC’s shift in enforcement activity. Some industry analysts continue to question the timing and focus of the agency’s decisions.

The post SEC Pulls Back on Crypto Lawsuits Under Under Trump Administration appeared first on Blockonomi.