Are Crypto Regulations Loosening in 2025?
Written by
Lydia Kibet
Edited by
Amber Barkley
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For years, the U.S. Securities and Exchange Commission (SEC) maintained a strict regulatory stance on cryptocurrency. Major lawsuits against popular exchanges, unfriendly enforcement actions and a lack of clarity left the crypto industry in an uncertain state.
However, 2025 has ushered in a significant change, with the SEC dismissing many cases and adopting a more favorable stance on crypto.
A Major Shift in Crypto Regulation
In the past month alone, the SEC has dismissed at least eight cases against crypto exchanges, including lawsuits against Coinbase and Binance, along with threats of possible legal action against Robinhood, OpenSea and Uniswap Labs.
This sudden change follows the stepping down of former SEC Chair Gary Gensler, whose administration was known for its rigid laws in the crypto space. Gensler stepped down in January, following President Donald Trump’s comment about firing him the first day in office. Trump nominated Paul Atkins and Mark Uyeda to head the agency.
The agency has so far introduced a crypto task force aimed at providing clarity on the application of federal securities laws on the crypto asset market.
“It’s a multifaceted demolition of the most successful SEC enforcement program in history,” said John Reed Stark, a former SEC enforcement attorney, Bloomberg reported. He described the change as unprecedented and beyond what anyone could have imagined.
The Trump Administration’s Impact on Crypto
The regulatory shift aligns with Trump’s stance on the crypto industry. During his campaign, he promised to turn the United States into “the crypto capital of the planet.” Trump also pledged to build a strategic bitcoin reserve.
Although he has signed a few executive orders related to crypto, digital currencies have experienced significant volatility in recent weeks, due in part to subsequent policy decisions on tariffs.
Much has also happened since Atkins and Uyeda took over the SEC on Jan. 21. The agency launched a new Cyber and Emerging Technologies Unit as well as the crypto task force. Additionally, exchanges like Robinhood, which had previously delisted crypto tokens like cardano and solana following SEC lawsuits, quickly resumed trading for U.S. customers after Trump’s victory.
What This Means for the Crypto Industry
With lawsuits being dropped and a task force in place to provide regulatory clarity, industry leaders and investors anticipate a more stable crypto future. Companies such as Ripple, which had previously focused hiring efforts abroad due to regulatory uncertainty, are now turning things around and expanding their U.S. presence.
While this change doesn’t imply that the SEC will ignore fraud or market manipulation, it does signal a new chapter of crypto regulation. As the industry evolves, all eyes will be on how the SEC strikes a balance between fostering innovation and ensuring investor protection.
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