USDCrypto Crackdown Eases: SEC Drops Lawsuits Against Major Players
SEC Closes Investigation into OpenSea, Boosting NFT Innovation and Clarity
The SEC has officially closed its investigation into OpenSea, the NFT marketplace founded by Devin Finzer, marking a significant win for digital creators. Finzer announced the decision on X, expressing concerns that classifying NFTs as securities would hinder innovation. The investigation had commenced in August 2024, examining allegations that NFTs on the platform classified as securities, a move that faced widespread criticism within the crypto industry.
Following this announcement, prominent figures like Alon of Pump.fun and Ji Kim from the Crypto Council for Innovation praised the SEC's ruling as a step towards fostering a more innovative environment for creators. The SEC's closure of the investigation brings clarity to the NFT sector, potentially encouraging further mainstream adoption while maintaining regulatory oversight. Moving forward, the industry aims to develop compliance frameworks that support growth without stifling innovation, as it seeks a balance between regulation and the dynamic nature of the NFT market.
SEC Drops Robinhood Crypto Probe Amid Regulatory Shift
Robinhood Crypto avoided SEC enforcement after a months-long probe ended with no action. The SEC had issued a Wells Notice in May 2024 but chose not to proceed. Robinhood’s legal chief, Dan Gallagher, criticized the investigation, arguing the company never facilitated securities transactions and called for clear crypto regulations. The decision aligns with a policy shift under President Trump, who rolled back restrictive measures like SAB 121 and appointed a crypto-focused task force.
The SEC also dropped cases against OpenSea and Coinbase. Gallagher, once rumored as a potential SEC Chair, dismissed interest in the role. Robinhood’s stock rose 2.4% premarket after a 7.9% drop on Friday. Crypto now contributes nearly half of its $672 million Q4 transaction revenue, surging 700% amid Bitcoin’s rally past $100K, driven by optimism over Trump’s re-election and expectations of friendlier regulations.
SEC Drops Investigations into Uniswap, Marking “Huge Win for DeFi”
The SEC has dropped its investigation into Uniswap Labs, marking a significant victory for the decentralized finance (DeFi) sector. Uniswap described this outcome as a “huge win for DeFi,” asserting that their operations align with the law. This decision follows a Wells Notice issued in April 2024, where the SEC claimed Uniswap was an unregistered broker and was dealing in unregistered securities.
Additionally, the SEC has dismissed investigations against Coinbase and Robinhood Crypto, with both platforms confirming no financial penalties were involved. Robinhood welcomed the SEC's conclusion, appreciating their decision not to pursue enforcement actions. The agency's shift towards a pro-crypto stance is said to coincide with Donald Trump’s presidency. The focus now turns to the SEC’s ongoing case against Ripple, which has been under scrutiny since 2020 for allegedly conducting an unregistered securities offering through XRP.
SEC Drops Cases Against Gemini, Tron’s Justin Sun, and MetaMask in Crypto Crackdown Reversal
On February 27, 2025, the U.S. Securities and Exchange Commission (SEC) announced the closure of its investigation into crypto exchange Gemini, opting not to pursue enforcement action. This decision concludes a 699-day probe into Gemini Earn, a program that allowed users to lend crypto assets for interest, which regulators had alleged involved unregistered securities. Additionally, the SEC is exploring a potential settlement with TRON founder Justin Sun regarding a civil fraud case, with both parties requesting a 60-day pause in legal proceedings to negotiate a resolution.
In a related development, ConsenSys CEO Joseph Lubin stated that the SEC will drop its case against MetaMask, with the Commission expected to file a stipulation to effectively close the case. These actions reflect a broader shift in the SEC's approach to crypto enforcement under Acting Chair Mark T. Uyeda, who has reassessed several cases initiated during the previous administration.
SEC Drops Lawsuit Against Coinbase, Signals Shift to Collaborative Crypto Regulation
The SEC has withdrawn its lawsuit against Coinbase, marking a notable shift in its cryptocurrency regulatory strategy. This dismissal is part of the SEC's broader pivot towards developing a structured regulatory framework, as announced with the launch of the Crypto Task Force on January 21, 2025. Acting Chairman Mark T. Uyeda emphasized the need for greater transparency in forming crypto policy. While the SEC clarified that this decision does not reflect the merits of the original claims against Coinbase, it signals a potential recalibration of the agency's approach, which has faced criticism for regulatory ambiguity.
Alongside Coinbase, the SEC has also dropped enforcement actions against other firms like Kraken and Ripple Labs, indicating a more collaborative stance. The SEC maintains its commitment to addressing fraud in the digital asset space through continued investigations. However, the agency noted that pending lawsuits would not be affected by this change in strategy.
This article has been refined and enhanced by ChatGPT.
