Trump:The U.S. Securities and Exchange Commission is no longer playing the tough cop it once was—at least not when it comes to crypto. According to a New York Times investigation, the agency has quietly pulled back from aggressive enforcement after President Donald Trump returned to the White House, putting the brakes on a large share of its crypto-related cases.
The numbers stand out. More than 60% of ongoing crypto enforcement actions were either paused, scaled down, or dropped altogether after Trump’s re-election. That marks a sharp shift for an agency that, until recently, was known for taking a hard line against crypto exchanges, token issuers, and blockchain firms.
Some of the most high-profile cases saw dramatic reversals. The SEC fully dropped its lawsuit against Binance, the world’s largest crypto exchange, shortly after Trump’s second term began. In another surprise move, the regulator sought to reduce a court-ordered penalty in its long-running case against Ripple Labs, leaving many industry watchers scratching their heads.
As enforcement actions faded, a pattern began to emerge. Several of the companies benefiting from the SEC’s softer approach reportedly had links to Trump’s political circle, business interests, or major donors. That overlap has fueled criticism that the agency’s retreat may not be entirely coincidental.
The SEC, however, strongly denies any political influence. Officials say the changes reflect a new legal and regulatory strategy rather than favoritism. Under Trump’s leadership, the agency has blamed the previous administration for what it calls excessive regulatory “overreach,” arguing that a reset was overdue.
Critics remain unconvinced. One of the most talked-about examples involves the Winklevoss twins, founders of Gemini Trust and longtime figures in the crypto space. The brothers have publicly supported Trump, donated to his fundraising efforts, and even contributed to the construction of a White House ballroom. They’ve also invested in ventures tied to Trump’s sons, Eric Trump and Donald Trump Jr. Their cases, like several others, ended up on the list of enforcement actions that were eased or dismissed.
By 2025, many crypto firms that once faced serious regulatory threats are breathing easier. Coinbase, the largest U.S.-based crypto exchange, also benefited when the SEC dropped its case following a prolonged legal battle.
Still, not everyone sees this shift as a win for the industry. SkyBridge Capital founder Anthony Scaramucci has warned that Trump’s deepening involvement in crypto—particularly his launch of meme coins tied to himself and Melania Trump—has damaged the sector’s credibility. He argues that the rise and crash of those tokens, combined with Trump’s personal profits, have made crypto look more like a political gambling game than a serious financial innovation.
While enforcement slows, the SEC hasn’t gone completely quiet. The agency has opened a formal review of Nasdaq’s proposal to list and trade tokenized securities, including stocks and exchange-traded products, on the same platform as traditional shares. Nasdaq says the plan would preserve shareholder rights while using blockchain to improve efficiency.
The SEC is now asking the public for feedback, as some industry players urge caution until clearer guidance emerges from the Depository Trust and Clearing Corporation on settlement standards.
Separately, the agency has issued new guidance on crypto wallets, explaining the differences between internet-connected hot wallets and offline cold storage. The SEC emphasized that investors must carefully decide whether to manage their own wallets or trust third-party custodians.
For now, the message is mixed: fewer lawsuits, more discussions, and a crypto industry navigating a far friendlier—but more controversial—regulatory landscape.
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