Crypto Cases See Sharp SEC Retreat Under Trump Administration: Report

TLDR

• The SEC pulled back from about 60% of inherited crypto cases in 2025.

• No new crypto enforcement cases were filed under Trump’s second term.

• The SEC denied political influence in decisions to dismiss cases.

• The shift contrasts with continued enforcement in non crypto cases.

The US Securities and Exchange Commission has reduced its crypto enforcement activity. A report says the change followed President Donald Trump’s return to office.

Report finds sharp drop in crypto enforcement

The New York Times reported that the SEC has eased crypto enforcement in 2025. Since January, the agency has paused or dropped about 60% of crypto related cases.

The report reviewed cases inherited from prior administrations. It found that the pullback was higher for crypto than other securities cases. Non crypto enforcement continued at a steadier pace.

High profile cases were included in the review. These involved firms such as Ripple Labs and Binance. The report said the SEC is not actively pursuing any case involving firms with Trump ties.

The SEC told the newspaper that political favoritism played no role. It said decisions were based on legal and policy considerations. The report found no evidence of direct pressure from Trump.

How the analysis was conducted

The New York Times analyzed enforcement actions across three administrations. Reporters reviewed more than 10,000 SEC announcements and hundreds of court records.

The review covered federal court cases and administrative proceedings. Crypto cases were defined as those involving issuance, sale, or classification of crypto assets as securities.

The analysis found that no new crypto enforcement cases were filed under Trump’s second term. By comparison, dozens were filed during the Biden administration.

Of 23 inherited crypto cases, the SEC pulled back from 61%. This included voluntary dismissals, stays, and concessions. Other securities cases did not show similar rates.

Political ties and agency response

The report noted that several crypto defendants had links to Trump or his family. These included political donations and business relationships. Trump family crypto ventures expanded in 2025.

Projects linked to the family include a memecoin and a Bitcoin mining company. The SEC said these connections did not influence enforcement decisions. All named firms denied wrongdoing.

Alex Thorn of Galaxy Digital responded to the report’s framing. He said the enforcement shift reflected policy correction rather than favoritism. He criticized prior regulatory approaches.

“The idea that the pivot is because of personal interest is dishonest framing,” Thorn said. He cited years of aggressive enforcement against crypto firms.

Changes within the SEC leadership

The enforcement shift comes during leadership changes at the SEC. Chair Paul Atkins is expected to remain in office for several years.

The agency is set to lose its final Democratic commissioner. Caroline Crenshaw is expected to leave after serving beyond her term expiration. No replacement has been named.

Crenshaw has criticized the current crypto approach. In recent remarks, she warned that easing regulation could increase market risks. She has spoken against reduced oversight.

Other commissioners have taken a different view. They have emphasized legal clarity and policy balance. Crypto enforcement priorities remain a subject of debate.

Broader context for crypto regulation

The enforcement pullback comes as Congress debates crypto market structure laws. Lawmakers are working toward a comprehensive framework before 2026.

A bill known as the CLARITY Act passed the House in July. Senate negotiations are ongoing, though progress remains uncertain. Committees released draft proposals.

Meanwhile, crypto firms continue operating amid regulatory uncertainty. Many cases remain unresolved or stayed. Industry participants are watching enforcement trends closely.

The SEC said its approach reflects evolving legal standards. It maintained that investor protection remains a priority. Crypto oversight continues to develop under the current administration.