SEC Dropped Nearly 60% of Crypto Cases During Trump Era: Report

The U.S. Securities and Exchange Commission (SEC) has paused, dropped, or eased enforcement in over 60% of ongoing cryptocurrency cases since President Donald Trump returned to office in January 2025, according to a New York Times investigation published December 14.

The probe, analyzing thousands of documents and court records across recent administrations, found this retreat unprecedented for a single industry. High-profile pullbacks include dropping the case against Binance, freezing litigation involving a Winklevoss twins-backed firm, and seeking to reduce penalties against Ripple Labs.

The SEC insists decisions stem from legal and policy reassessments, not politics, with no evidence of direct White House pressure. However, some affected firms later formed financial or political ties to Trump or his family, whose crypto ventures (e.g., World Liberty Financial, Official Trump memecoin, American Bitcoin mining) expanded in 2025—fueling conflict-of-interest concerns.

Industry voices like Galaxy Digital’s Alex Thorn argue the shift corrects prior “insane” overreach under Biden/Gensler, where dozens of cases were filed monthly versus fewer in Trump’s first term.

Positive impacts: Boosted innovation, investor confidence, and market growth without aggressive hurdles.

Negative: Potential risks from reduced oversight, allowing fraud or contagion.

No new crypto cases have been initiated in 2025, contrasting steady traditional securities enforcement. With a Republican-led SEC (post-Democratic commissioner exits), experts predict clearer rules favoring growth while prioritizing fraud protection.

This pivot aligns with Trump’s pro-crypto stance, aiming to position the U.S. as the “crypto capital.” Future clarity may come via legislation like the Clarity Act, balancing innovation and accountability for a maturing sector.