The U.S. Securities and Exchange Commission (SEC) has collaborated with blockchain firm Dragonchain to file a joint motion seeking the dismissal of an ongoing lawsuit against the company.
This motion, filed on Thursday, signifies a significant policy change within the agency, which has created a Crypto Task Force earlier this year to reevaluate its approach to cryptocurrency regulation.
The SEC initially initiated legal proceedings against Dragonchain in August 2022, alleging that the company and its affiliates engaged in an unregistered securities offering linked to their initial coin offering (ICO) conducted in 2017.
Trump’s Reelection Influences SEC’s Approach to Crypto Regulation
During former Chair Gary Gensler’s tenure, the SEC took an aggressive stance against a wide array of cryptocurrency projects, claiming that many digital assets should be classified as unregistered investment securities.
However, following President Donald Trump’s reelection and Gensler’s exit, there has been a noticeable shift in the SEC’s perspective on cryptocurrency regulation.
The newly instituted Crypto Task Force is now concentrating on defining which digital assets fall outside the agency’s purview, and has recently indicated that the majority of meme coins do not classify as securities.
NEW from me: SEC Drops Dragonchain Lawsuit in Latest Crypto Enforcement Reversal
“We finally have the right to innovate without fear,” @dragonchain founder @j0j0r0 told me.
Read the Friday edition of the @CryptoAmerica_ newsletter https://t.co/9iEMYj1oaD
— Eleanor Terrett (@EleanorTerrett) April 25, 2025
“Considering the circumstances and exercising its discretion, the Commission believes that dismissing this case is appropriate,” the SEC stated in its court filing.
The announcement of the lawsuit’s dismissal led to a dramatic increase in Dragonchain’s native token, DRGN, which rose over 100% within 24 hours, climbing to $0.07898, according to data from CoinMarketCap.
New SEC Leadership Welcomes Changes for Crypto
Paul Atkins was recently sworn in as the new Chairman of the SEC, a change that has been met with optimism from the digital asset community.
Under Atkins’ direction, the SEC has already rescinded or postponed several notable cases against cryptocurrency companies.
Earlier this year, the agency dismissed its lawsuits against Coinbase and Cumberland DRW and concluded its investigation into Uniswap Labs in February without any enforcement actions.
In a recent development, the SEC also wrapped up its investigation of CyberKongz, a well-known project in the NFT and gaming space on Ethereum, without pursuing enforcement measures.
Furthermore, the agency announced that it would not take further legal action against Richard Schueler, more commonly known as Richard Heart, the creator of Hex, PulseChain, and PulseX.
SEC attorney Matthew Gulde informed Judge Carol Bagley Amon of the New York District Court that the regulator would forgo an amended complaint following the judge’s dismissal of the original lawsuit.
This initial complaint had been tossed out by Judge Amon on February 28, based on a lack of jurisdiction, asserting that Heart’s activities were not specifically targeted at U.S. investors.
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