The SEC's Changing Crypto Strategy Under Trump

The SEC has been making significant moves in the crypto world recently. This shift began after President Trump returned to office.

Major Cases Dropped

• Gemini Trust Company: The SEC and Gemini agreed to dismiss a case regarding Gemini Earn, a lending product. The case involved allegations of unregistered securities against Gemini and its partner, Genesis Global Capital. The resolution included investors receiving their crypto back.

• Another Investigation Closed: The SEC also closed a nearly two-year-long investigation into Gemini, unrelated to the Earn program, deciding not to take any action.

Broader Shift in Approach

The SEC's new leadership in 2025 has been dropping or pausing numerous crypto cases. These cases were deemed excessive by the new Trump administration. So far, the SEC has ended actions against at least 17 firms, including Coinbase, Binance, and Ripple.

The SEC is now focusing on cases with clear harm or risk, adopting a more selective approach. This is a significant departure from their previous aggressive stance.

Industry Reactions

Experts note that the SEC is trying a new approach, focusing on risk assessment rather than broad enforcement. This shift acknowledges that enforcement alone is not the best way to govern decentralized technologies.

Legislative Changes

The GENIUS Act was passed, providing more clarity on crypto regulations and ending years of uncertainty about court rulings on crypto cases.