SEC Scales Back Crypto Enforcement at Faster Pace Than Other Securities Cases

The US Securities and Exchange Commission has paused or dismissed a significantly higher share of cryptocurrency-related investigations than cases involving other areas of securities law since President Donald Trump took office, according to a report by The New York Times.

The report found that roughly 60% of SEC investigations tied to crypto firms or projects have been shelved or dropped since January. High-profile cases cited include enforcement actions against Ripple Labs and Binance. The newspaper also noted that the agency is "no longer actively pursuing a single case against a firm with known Trump ties."

The SEC told The New York Times that the decisions were based on legal and policy considerations rather than political factors, and the report said it found no evidence that Trump directly intervened in enforcement matters.

Alex Thorn, head of firmwide research at Galaxy Digital, rejected suggestions that political interests drove the shift. "The idea that the regulatory pivot on crypto over the last year is somehow because of the president's personal interest, and not because the prior regulatory posture was absolutely insane... is dishonest framing," he said, adding that it overlooked "four years of direct attacks by the actual partisans."

According to the report, the pullback in crypto enforcement stands in contrast to the SEC's handling of traditional securities cases, where no similar reduction has occurred. The divergence has drawn attention as the Trump family has expanded its involvement in digital assets through initiatives such as World Liberty Financial, the Official Trump (TRUMP) memecoin, and the Bitcoin mining venture American Bitcoin.

The shift also coincides with an upcoming change in the commission's composition. Democratic commissioner Caroline Crenshaw is expected to leave the agency in the coming weeks, after serving beyond her term expiration. Her departure would leave the SEC composed entirely of Republican appointees unless new commissioners are named.

Crenshaw has repeatedly warned against easing oversight of crypto markets. In one of her final public remarks, she cautioned that reduced scrutiny could "lead to more significant market contagion." Until new appointments are made, the SEC's approach to crypto enforcement will be shaped largely by its current Republican majority, raising questions about how future investigations will be handled.