Since President Donald Trump's return to the White House, the Securities and Exchange Commission (SEC) has significantly reduced its enforcement efforts in the cryptocurrency sector. A recent report by The New York Times reveals that the SEC has dismissed, paused, or softened penalties in over 60% of crypto-related cases that were active at the beginning of Trump's second term on January 20th. This pullback is markedly higher than the 4% dismissal rate for non-crypto cases during the same period.
The report analyzed thousands of government documents and court records, highlighting a stark contrast to the SEC's approach under the previous administration. During the Biden administration, the SEC brought an average of more than two crypto cases per month, while Trump's first term saw about one crypto case monthly. Since Trump's return, the SEC has not filed any new cryptocurrency cases, while continuing to pursue cases against other types of defendants.
Several high-profile cases have seen significant shifts. Enforcement actions against firms like Binance and Ripple have been dropped or softened. A lawsuit against a firm backed by the Winklevoss twins also stalled after the change in administration. The SEC even moved to dismiss its civil enforcement action against Coinbase for violations of US securities laws. Additionally, the agency has concluded or closed a number of investigations into major crypto platforms. In February 2025, DeFi trading platform Uniswap announced that the SEC had "officially closed" its investigation into the platform.
According to the NYT, several of the eased or dismissed cases involved companies or individuals who later developed political or business connections with Trump or his family. The report suggests that some legal outcomes coincided with donations or ties to the Trump family's expanding crypto-related ventures.
Paul S. Atkins, Trump's newly appointed SEC chairman, has hailed this shift as a "new day" for the industry. However, career SEC lawyers who brought some of these cases have expressed alarm at the agency's reversal. Some fear that the decision could undermine existing regulatory frameworks.
The SEC told The New York Times that political favoritism had "nothing to do" with its crypto enforcement strategy, and the shift to dismiss investigations and cases was for legal and policy reasons. The agency maintains its authority over tokens. However, this explanation has not quelled concerns about potential conflicts of interest and the influence of political connections on regulatory decisions.
Some experts argue that the SEC's prior regulatory posture was overly aggressive. Alex Thorn, head of firmwide research at Galaxy Digital, stated that the idea that the regulatory pivot on crypto is due to the president's personal interest is dishonest framing that ignores years of direct attacks by actual partisans.
The Trump family has significantly expanded its involvement in the digital asset industry in 2025. Entities linked to the president or his family are participating in several cryptocurrency-related projects, including World Liberty Financial, Trump's memecoin, Official Trump (TRUMP) and the president's sons' Bitcoin mining venture, American Bitcoin. This further fuels concerns about potential conflicts of interest.
The SEC's change in approach reflects a broader shift in Washington, as the Trump administration has distanced itself from the previous approach, which was marked by strict regulatory scrutiny of the crypto industry. The market reactions remain mixed as investors navigate unclear guidelines.
