Regulation 2 min, 9 sec READ

by Mike Dalton

The SEC has published updated stances on core crypto issues and dropped several legal cases.

The U.S. Securities and Exchange Commission (SEC) published several statements this quarter on whether certain crypto activities are within its domain.

In the latest of those statements, published on April 4, the SEC’s Division of Corporation Finance declared that it does not consider the sale and offer of certain "covered stablecoins" to involve the sale and offer of securities.

Such stablecoins are tied to the price of the U.S. dollar, readily redeemable, and backed by a reserve of U.S. dollars and low-risk assets. They are intended for payment and value storage and do not offer interest or governance rights.

Previously, the Division addressed memecoin transactions and proof-of-work crypto mining, stating that it does not consider those activities to involve the offer and sale of securities (to the extent that each statement describes).

SEC Commissioner Caroline Crenshaw published critical responses to each statement, scrutinizing their content and emphasizing that each does not definitively exclude the relevant assets from SEC oversight.

SEC Is Dropping Crypto Cases

The SEC is also dropping crypto cases that it previously launched against members of the crypto sector. On March 27, it ended cases against crypto exchange Kraken, blockchain development firm Consensys, and trading firm Cumberland DRW.

The agency dropped another case against Ripple Labs on March 19. Though the case had reached a ruling that gave Ripple a partial victory in 2023, the SEC's appeal and certain other legal proceedings lasted into 2025.

In a statement, Ripple CEO Brad Garlinghouse said that the SEC's decision to drop its appeal is "a resounding victory for Ripple, for crypto, every way you look at it."

The abandoned cases follow other similar decisions. Notably, the SEC dropped its case against Coinbase and ended probes into Uniswap and OpenSea in February.

Paul Atkins Expected as SEC Chair

The SEC’s changing attitudes toward crypto began under the Trump administration, which led an overall change in crypto policy across the U.S. government.

Alongside government-wide efforts, the SEC has established a pro-crypto task force led by Commissioner Hester Peirce and other members of the agency.

Meanwhile, Paul Atkins is expected to take on the role of SEC Chairman, taking over from Acting Chairman Mark Uyeda. Atkins' leadership is expected to further shift away from the strong enforcement policies of his predecessor, Gary Gensler.

Atkins has faced pushback from Democratic Senator Elizabeth Warren, who criticized his preference for weak regulation and ties to the failed crypto exchange FTX.