A lot is going on in the world of crypto regulation lately—some of it feels like déjà vu, other bits look completely new, and yes, it’s still pretty confusing. Let’s break down recent SEC developments around crypto: what’s shifted, what’s stayed the same, and what might be around the corner.
Regulatory Tone Shifts Sharply Under New Leadership
Enforcement Dials Back
The SEC’s posture toward crypto enforcement in 2025 marked the most dramatic shift seen in years. A Cornerstone Research report shows the agency initiated only 13 cryptocurrency-related enforcement actions—down approximately 60% from 33 cases in 2024 . That’s the lowest enforcement volume since 2017—a clear signal that the aggressive stance under former Chair Gary Gensler has pivoted .
Public data confirms that eight of those 13 new actions were brought forward under Chair Paul Atkins, and all involved allegations of fraud, rather than the broader securities-classification theories seen previously . Monetary penalties dropped too—only about $142 million in 2025, which is under 3% of the total penalties from the prior year .
Big Cases Dropped or Paused
Several major enforcement actions against leading crypto firms have quietly been dismissed or paused:
• Coinbase saw its lawsuit dismissed in February 2025, with no admissions of wrongdoing required .
• Kraken enjoyed a similar deal—its case was dropped with prejudice, meaning it can’t be reopened .
• The SEC also paused its lawsuit against Binance, requesting a 60-day stay in early 2025, partly due to the work of the newly created Crypto Task Force . Later, the Binance case was formally dropped—buckling one of the last standing enforcement actions in crypto .
These developments collectively illustrate a clear shift: fewer new cases, and a willingness to let old ones go—especially those viewed as politically fraught or costly.
Strategy Pivot: From Enforcement to Frameworks
Harnessing Rulemaking Authority
While Congress debates crypto legislation (like the Clarity Act in the Senate), Chair Atkins maintains the SEC can still act without new laws, using its existing authority to keep the industry moving . In particular, he’s preparing an innovation exemption—a lighter-touch pathway for new crypto products such as staking or token offerings .
Coordinated Regulation
A joint SEC–CFTC event scheduled for January 29, 2026, underscores the push for regulatory clarity between the two agencies . As Chair Atkins put it, the goal is to replace “unclear…legacy jurisdictional silos” with harmonized oversight supporting innovation and U.S. market leadership .
Complementing that, CFTC Chair Michael Selig has launched the Future‑Proof initiative to update rules around blockchain, AI trading and prediction markets .
Context & Examples: What This Means in Practice
- The crypto industry had long criticized the SEC’s “regulation-by-lawsuit” approach, arguing that it created needless ambiguity. Now, with fewer cases and one-by-one dismissal of prior enforcement, that critique feels less justified than it did under Gensler.
- The stalled Clarity Act—which aimed to create a unified regulatory structure—hits a snag, particularly over stablecoin reward mechanics debated between Coinbase and banks . Still, the SEC seems to be saying, “We don’t need to wait.”
- The innovation exemption could be a game-changer for nascent crypto use cases. If implemented wisely, it might provide faster and safer paths to market without heavy compliance burdens.
These examples reveal a regulatory environment that’s more collaborative, less confrontational—an approach that may attract fintech and crypto capital back to U.S. shores.
“We have enough authority to drive forward,” said SEC Chair Paul Atkins, signaling his confidence in the Commission’s power to shape crypto policy even as Congress debates broader frameworks .
Conclusion
The U.S. SEC’s posture toward crypto has clearly pivoted in 2025–2026—from aggressive enforcement into a more rule‑oriented, collaborative era. Enforcement actions dropped by about 60%, key cases involving Coinbase, Kraken and Binance were closed or paused, and new instruments like the innovation exemption and inter-agency coordination are in the works. While legislation remains unfinished, the SEC looks determined to keep the regulation train rolling forward. For industry players, this means less legal shadow boxing—and possibly more clarity, or at least a clearer path—to operate.
FAQs
What caused the dramatic drop in SEC crypto enforcement actions in 2025?
Under Chair Paul Atkins, the SEC prioritized fraud-focused cases and dismissed or paused many legacy enforcement suits. As a result, crypto-related enforcement actions declined from 33 in 2024 to just 13 in 2025—a roughly 60% reduction .
Did the SEC drop its cases against Coinbase and Kraken?
Yes. In early 2025, enforcement actions against both Coinbase and Kraken were dismissed—with no admission of wrongdoing and, in Kraken’s case, “with prejudice,” meaning they cannot be retried .
What is the innovation exemption the SEC is proposing?
The innovation exemption is a proposed lighter-touch regulatory pathway allowing crypto firms to launch certain products—like token offerings or staking—under principles-based rules rather than full securities registration .
How are the SEC and CFTC coordinating on crypto regulation?
They’ve scheduled a public event for January 29, 2026, to outline harmonized approaches and reduce jurisdictional overlap. Meanwhile, the CFTC is also pursuing its “Future‑Proof” initiative to modernize rules for blockchain, AI, and prediction markets .
Is new crypto legislation still needed?
While the SEC is pushing forward through existing authority, broader legislation like the Clarity Act—currently stalled—remains important. But current SEC leadership emphasizes they can act in the meantime via measures like the innovation exemption .
What’s the potential impact on the crypto industry?
With enforcement easing and clearer regulation on the horizon, crypto firms may find it safer to launch and expand operations within the U.S.—boosting innovation and investment at a time when other jurisdictions are also courting digital-asset business.
