Introduction: SEC's Major Shift
After years of protracted legal battles, the U.S. Securities and Exchange Commission under the Trump administration has dramatically reversed course on crypto enforcement. With crypto-friendly Chairman Paul Atkins and a Crypto Task Force led by longtime industry advocate Hester Peirce, the SEC has moved away from what Peirce called 'regulation by enforcement' to a more cooperative and rulemaking-based approach. Over 20 major crypto firms have seen their cases dismissed or investigations closed in just a few months. Below are the most significant pivots, reversals, and exits by the SEC since Trump took office.
Major Crypto Exchange Cases Dismissed
Ripple
The SEC and Ripple Labs officially dropped their respective appeals in August 2025, ending a four-year lawsuit that began with allegations of unregistered securities sales of XRP in 2021. A partial ruling in 2023 favored Ripple, but the SEC appealed. In early 2025, both sides agreed to jointly pause appeals to pursue a negotiated resolution, which faced opposition from SEC Commissioner Caroline Crenshaw and was denied by a district judge. After a second denial, Ripple dropped its cross-appeal in June, culminating in the final August dismissal. Ripple CEO Brad Garlinghouse called it 'a victory and a long overdue surrender from the SEC.'
Binance
The SEC filed a motion on May 29, 2025 to dismiss its case against Binance, founder Changpeng 'CZ' Zhao, and Binance.US, which alleged unregistered securities offerings and more. A joint 60-day stay in February helped facilitate resolution, aided by the SEC's Crypto Task Force. Binance had previously settled separate cases for $4.3 billion and $2.7 billion related to money laundering and sanctions violations. CZ denied courting President Trump for a pardon but confirmed he had started the legal process for seeking one.
Coinbase
Leading U.S. exchange Coinbase had its lawsuit formally dismissed by the SEC in February 2025. Filed in 2023, the suit alleged Coinbase operated as an unregistered securities exchange and specifically named tokens like Solana (SOL) and Polygon (MATIC). The SEC stated the dismissal would 'facilitate the Commission’s ongoing efforts to reform and renew its regulatory approach.' Coinbase Chief Legal Officer Paul Grewal said 'there will be no settlement or compromise—a wrong will simply be made right.'
Kraken
The SEC agreed to drop its latest lawsuit against Kraken on March 3, 2025, with commissioner approval on March 27. The suit alleged securities law violations related to Kraken's staking-as-a-service system. An earlier suit was settled in February 2023 with a $30 million fine. The November 2023 suit (alleging unregistered exchange, dealer, and broker operations) was dropped with 'no admission of wrongdoing, no penalties paid, and no changes to business.'
Robinhood Crypto
The SEC ended its investigation into Robinhood Crypto with no action. Robinhood received a Wells notice in May 2024 but argued the investigation should never have been opened. Chief Legal Officer Dan Gallagher stated, 'Any case against Robinhood Crypto would have failed. We appreciate the formal closing and a return to the rule of law.'
Crypto.com
The SEC closed its investigation into Crypto.com on March 27, 2025, with no enforcement action. Crypto.com had sued the SEC in October 2024 after receiving a Wells notice. Chief Legal Officer Nick Lundgren expressed eagerness to work with Chair Atkins on future legislation.
DeFi and NFT Case Reversals
Uniswap Labs
The SEC ended its investigation into Uniswap Labs in February 2025 without charges. Uniswap Labs received a Wells notice in April 2024 alleging operation as an unregistered broker, exchange, and clearing agency. CEO Hayden Adams called it 'a huge win, not just for Uniswap Labs but for DeFi as a whole.'
OpenSea
The SEC dropped its investigation into NFT marketplace OpenSea in February 2025, abandoning charges of operating as an unlicensed securities brokerage. OpenSea received a Wells notice in August 2024. CEO Devin Finzer stated, 'Trying to classify NFTs as securities would have been a step backward—one that misinterprets the law and stifles innovation.'
Yuga Labs (Bored Ape Yacht Club)
Yuga Labs announced on March 3, 2025 that the SEC closed its investigation into the company, ongoing since 2022, which scrutinized NFT offerings and the ApeCoin token launch. Yuga Labs declared, 'NFTs are not securities. This is a huge win for NFTs and all creators.'
CyberKongz
The Ethereum NFT project CyberKongz confirmed the SEC dropped its investigation after nearly two years. The project received a Wells notice in December 2024 regarding its BANANA token and a 2021 gaming contract migration. The project posted, 'After years of litigation, unjust allegations, crippling legal fees... we are free.'
Consensys
The case against Consensys (parent of MetaMask and Linea) was dismissed on March 27, 2025, focusing on staking features in MetaMask. Founder Joseph Lubin said, 'Now we can get 100% back to building. 2025 is going to be the best year yet for Ethereum and Consensys.' (Disclosure: Consensys is an investor in Decrypt.)
Horizen Labs
Horizen Labs, investigated for its role in the ApeCoin launch, learned on March 4, 2025 that the SEC ended its investigation with no enforcement action. CEO Rob Viglione noted, 'Horizen Labs could have gone offshore... but we chose to stay in the U.S. despite the war on crypto.'
Other Notable Cases
Gemini Trust
A two-year investigation into Gemini Trust ended without SEC enforcement. Co-founder Cameron Winklevoss estimated 'tens of millions in legal fees and hundreds of millions in lost productivity.' On April 1, 2025, the SEC and Gemini also agreed to a 60-day stay on a $900 million lawsuit related to the firm's lending program.
Justin Sun / Tron
Justin Sun and Tron filed a joint motion with the SEC to temporarily stay the regulator's case to seek resolution. The case stemmed from 2023 allegations that Sun conducted over 600,000 wash trades to manipulate Tron (TRX) volumes, resulting in around $32 million in profits. The joint filing cited 'conserving judicial resources.'
Cumberland DRW
Market maker Cumberland's case was officially dropped on March 27, 2025, alongside other crypto cases. The SEC sued in October 2024 for acting as an unregistered dealer of securities. Cumberland expressed commitment to dialogue with the SEC.
Immutable
Ethereum gaming company Immutable announced on March 25, 2025 that the SEC concluded its investigation into the firm, which centered on potential securities violations related to its 2021 IMX token sale (raising at least $12.5 million). Immutable posted, 'Zero findings of wrongdoing... the SEC is taking no action.'
Hawk Tuah Girl (Haliey Welch)
Haliey Welch, known as the Hawk Tuah girl, told TMZ the SEC investigation into her meme coin HAWK is over. The Solana-based meme coin launched in December 2024 and quickly collapsed, leading to rug pull allegations. Welch stated she cooperated with authorities and attorneys.
Helium
The SEC dismissed its lawsuit against Nova Labs, the team behind Helium, a Solana-based decentralized wireless network. The suit was one of former Chair Gary Gensler's final actions before leaving office on January 20, 2025. Nova Labs agreed to pay a $200,000 fine to settle claims it misled investors.
PayPal
PayPal faced nearly two years of scrutiny over its PYUSD stablecoin, but the SEC took no action. The regulator issued a subpoena in November 2023 seeking PYUSD documents. In February 2025, the SEC decided to end the investigation, confirmed in an April filing.
Crypto Rulemaking Case
The SEC voluntarily dropped an appeal on February 17, 2025 in a case involving its attempt to extend securities laws to DeFi applications and users. A Texas federal judge had ruled the expanded definitions unlawful. Blockchain Association CEO Kristin Smith called it a 'complete and total victory.'
Conclusion
The Trump administration's SEC has provided the crypto industry with unprecedented regulatory relief by dismissing or closing over 20 major enforcement cases. From exchanges (Ripple, Binance, Coinbase, Kraken) to DeFi (Uniswap, Consensys), NFTs (OpenSea, Yuga Labs, CyberKongz), stablecoins (PayPal), meme coins (HAWK), and wireless networks (Helium), nearly every sector has experienced a form of 'pardon.' While most cases ended with no admission of wrongdoing or penalties, the shift signals a move toward clearer, more innovation-friendly crypto regulation in the United States. However, formal legislation is still needed to cement these changes.
(Editor's note: This story was originally published on March 2, 2025 and last updated on August 13, 2025.)