Locked In

Posted on 06/03/2025 | 310 Views
< Back to news

The tides of cryptocurrency regulation in the United States are shifting, and it’s happening at a breakneck pace. What once seemed like an adversarial stance from the Securities and Exchange Commission (SEC) under former Chair Gary Gensler is now transforming into something much more cooperative under new leadership. The recent wave of SEC case dismissals against major crypto firms marks a significant change in policy and sets the stage for the highly anticipated White House Crypto Summit.
 

A New SEC Stance: Cases Dropped; Industry Engaged

For years, the SEC aggressively pursued enforcement actions against crypto companies, alleging securities law violations. However, in the past few months, we’ve seen a stark reversal. Consider this list of major crypto companies that recently had their cases dismissed or investigations closed:

  • Coinbase: The SEC dropped its civil enforcement action against the exchange on February 27, 2025.

  • Kraken: On March 3, 2025, Kraken announced that the SEC had agreed in principle to dismiss its lawsuit, with no penalties or admission of wrongdoing.

  • Yuga Labs: The NFT giant revealed that its SEC investigation had been closed.

  • Robinhood: The SEC ended its probe into Robinhood’s crypto division in late February 2025.

  • OpenSea: The NFT marketplace confirmed that its SEC investigation had concluded.

  • Cumberland DRW: On March 5, 2025, the market maker reached an agreement with the SEC to dismiss its enforcement case.

This unprecedented move suggests a recalibration in the SEC’s approach, aligning more with fostering industry growth rather than stifling it. But what prompted this dramatic shift?
 

Crypto Sunshine Meetings and Legal Rethinks

Behind the scenes, high-profile legal minds like Jason Gottlieb, Andrew Hinkes, and J.W. Verret have been instrumental in presenting alternative regulatory approaches. At a February 24, 2025, meeting with the Crypto Task Force, they outlined a legal framework that could guide the SEC’s new direction, offering tools such as:

  1. An interpretive release to correct past SEC misinterpretations of digital asset classifications.
  2. Amicus briefs to support ongoing securities litigation involving crypto.
  3. A custom registration path for digital asset offerings, modelled on past securities adaptations.
  4. A safe harbour proposal, giving crypto startups clear compliance paths.
  5. A memorandum of understanding between the SEC and the Commodity Futures Trading Commission (CFTC).
  6. Closing letters to conclude investigations and provide regulatory clarity to firms.

This strategic legal shift appears to have paved the way for a more industry-friendly SEC, and with the upcoming White House Crypto Summit, we may see this approach crystallise into official policy.
 

The White House Crypto Summit: What to Expect

With a guest list featuring Donald Trump, Bo Hines, David Sacks (the “crypto czar”), and a host of industry leaders, this summit is set to redefine the U.S. government’s stance on digital assets. Key topics on the agenda include:

 • The establishment of a U.S. Strategic Crypto Reserve: A proposed federal cryptocurrency reserve featuring Bitcoin, Ethereum, XRP, Solana, and Cardano, with Commerce Secretary Howard Lutnick emphasising Bitcoin’s distinct treatment.

 • Regulatory framework discussions: Crafting clear guidelines to support crypto innovation while maintaining economic freedom, including proposals for stablecoin regulations.

 • Industry collaboration: Bringing together major players like Coinbase’s Brian Armstrong, MicroStrategy’s Michael Saylor, Ripple's CEO Brad Garlinghouse, and Chainlink’s Sergey Nazarov to align industry and government interests.

 • Legislative initiatives: Despite being relatively new to crypto, Bo Hines has been spearheading legislation aimed at integrating digital assets into the U.S. financial system.
 

The Bigger Picture: A Crypto Renaissance in Washington?

In addition to the SEC’s softened stance, other government initiatives signal a broader effort to embrace crypto: • The recognition of XRP in the Federal Register (mentioned 175 times) highlights growing governmental understanding, the potential quality laws and acceptance of blockchain technology.

 • A Crypto Task Force is actively working on new regulatory frameworks to ensure a balance between innovation and investor protection.

 • Ongoing discussions between regulators and industry leaders suggest a move toward a structured, long-term strategy for digital assets.

With the upcoming Crypto Summit poised to formalise these developments Friday (U.S. time), we may be witnessing a watershed moment for the crypto industry in the U.S. Rather than the regulatory hostility of the past, a new era of cooperation between government and crypto leaders appears to be on the horizon. What started as pre-2024 USA Election ripples, morphed into waves of support, which could become an even greater storm surge of favourable policy, executive orders and legislation.