The US Securities and Exchange Commission (SEC) is conducting a full-scale retreat from most major crypto proceedings that began under former chairman Gary Gensler, but not all in Kawit.
At least four demands against crypto companies – Ripple, Kraken, Cumberland DRW and Pulechain – remain ongoing, and the trials of another three companies – Unicoin, Crypto.com and cannot be changed – has not been closed.
The SEC Commissioner Hester Peirce, the head of the agency’s newly created Crypto Task Force, has been good to his promise earlier this month to “overthrow” the SEC from various crypto -related proceedings. The agency agreed to drop cases against Coinbase and Consensys, the waiting approved of the commissioner, and placed its cases against Binance and Tron in pause as the parties considered a “potential resolution.”
The unacceptable level of activity in the SEC as it has moved away from crypto actions describes “how beyond pale the last four years is,” led legal official Paul Grewal in an interview with CoinDesk. “It’s definitely something we haven’t seen yet, but I think it’s properly warranted.”
Over the past two weeks, a number of companies have previously received notices of Wells-essentially a head-up from the regulator that it intends to file implementation charges-the word from the SEC has taken that their investigations are closed, and the implementation charges will not be filed against them. That list includes Robinhood Crypto, Decentralized Protocol Uniswap, unpaid token (NFT) Opensea and Crypto Exchange Gemini market.
The open lawsuit
Although the SEC has withdrawn from its accusations that the Coinbase has been operated as an unregistered broker and exchange, similar charges against Kraken have not fallen. The Sec Sued Kraken in November 2023, accused the firm of commingling customer and corporate funds while operating as an unregistered broker securities, agency and entrepreneurship. A representative for Kraken did not respond to CoinDesk’s request for comment.
Similarly, the SEC has accused the Cumberland DRW-the chicago-based Crypto-based Crypto trade of the DRW-last year for allegedly running as an unregistered security businessman. Don Wilson, the founder of the DRW, promised to fight the suit at that time. A representative for the DRW has refused to comment, telling CoinDesk that the firm is currently no updates to share.
Read more: Who is afraid of Gary Gensler? Not Don Wilson, the businessman to defeat the regulator previously
The SEC accused Ripple in 2020 and mainly lost in 2023, when a New York judge decided that the XRP, when sold to investors, was not a security. The Sec. Even the same Ripple executives and Outside of experts It is thought that the agency will lower the appeal, the agency has not yet made any public statement about the case. A representative for Ripple at CoinDesk said the company is currently no updates to share.
Rebecca Fike, a Dallas-based partner Vinson & Elkins and a former SEC-implementation lawyer, told CoinDesk that he hoped the SEC would drop any of the pending cases based on using the Howey Test to charge a firm that offered unregistered security, especially where there was no discovering or other issues.
“Why some have fallen before others, it can be internal or court -based times setting priorities,” Fike said. “There is also a chance that some crypto-related cases that seem to fit the Howey Framework and which the SEC determines are based on the scarely in fraud-that is, a promoter or CEO that says something but doing another of the investor funds-can continue under a traditional fraud framework.”
The Sec brought allegations into fraud and registration Against Richard Schuer, better known as Richard Heart, Pulsechain, Pulsex and Hex in July 2023. There was a hearing on the movement of the defendants to be removed last October, and the judge managed the case that was removed last Friday, though he gave the SEC 20 days to change it.
The open probes
Many of the SEC provisions – investigations that have not yet led to submitted charges – in crypto companies remain open.
Crypto.com SEC accused in October after it received a notice in the well. The firm is voluntary -inside Lowered its suit two months laterShortly after CEO Kris Marzalek Meet-president was identified as Donald Trump’s appointed. Crypto.com did not respond to CoinDesk’s request for comment.
Australian Blockchain Gaming and NFT Company cannot be changed also received a notice of Wells Last year was connected to the sale of its IMX token in 2021, and pledged to fight any accompanying implementation charge. Neither the company nor the SEC has made any public statements regarding the status of the investigation.
Unicoin also received a notice of Wells Last year informed the firm that the SEC planned to bring charges expressing violations related to fraud, fraudulent skills and the offer and sale of unregistered security. Unicoin did not respond to CoinDesk’s request for comment.
Looking forward
The SEC contraction, as well as the collapse of the crypto implementation team, according to Fike, is an indication that the agency is moving to the so-called “regulation by implementing” approach to the crypto industry conducted by former chair Gensler.
“I think the SEC has signed through staff which means what is being said today: that crypto regulation will come through statements and potential judgments in the future, not cases on implementing the case,” Fike said. “Their hope, and mine, is a backbone away from calling all crypto security security and analysis of the crypto industry as a whole under the new taskforce of Commissioner Peirce, will create some clarity around crypto regulation.”
While the SEC is changing rapidly, not everyone is happy. Gemini’s president and co-founder Cameron Winkelvoss was taken to X earlier this week To request a rewardn for time and money the crypto exchange spent self -defense against the SEC investigation. He suggested that the SEC pays Gemini Triple the legal costs and the public fires of all the staff involved in the investigation.
According to Fike, this is probably a non -starter.
“I can’t imagine that the SEC will do that. It seems like a hard one to set for it and other agencies who try to regulate new and emerging markets,” Fike said. “It is important to note that new financial products are often a source of fraud, and people/investors can be damaged by them. I think the SEC is trying to be present and active in a billion dollar market full of investors who may be afraid of being ‘missing’ but does not have to have financial or technological savvy to parse through real Crypto-ledgery of Crypto.”
Fike continues, adding: “Many may not agree with the path they have taken, and commissioners Peirce and Uyeda clearly do, but they also benefit from some maturity in the Crypto universe. I think it is good that the SEC takes a step and looking to create a better regulation structure for crypto and digital properties, but I don’t think they mean cryptos and digital properties, but I don’t think they mean cryptos and digital properties, but I don’t think they mean cryptos and digital properties, effort is unintentionally or worthy penalty. “
