This week, the digital foreign exchange industry undoubtedly had four big profits, as Securities and Exchange Commission (SEC) lost moods and investigations of major players, including Coinbase (Nasdaq: Coinbase), Robinhood Crypto (Nasdaq: Hood), Uniswap and the non-fungal token (NFT) Marketplace Opensea.
Coin base: In June 2023, Sec Coinbase sued and claimed that it had served as an unregistered broker, exchange and clearing agency since 2019. The Commission claimed that the company violated federal securities laws by facilitating unregistered securities trading. After over a year with legal battles, Sec secluded the case of February 21, 2025.
Robinhood crypto: In May 2024 Robinhood received one Wells– A formal warning from the SEC that the considered enforcement measures against the company’s crypto operations. But Sec suddenly closed It is an investigation on February 24, 2025.
Laboratories: Uniswap Labs got a Wells In April 2024, accusations that it served as an unregistered securities broker and exchange. But on 25 February 2025, Sec dropped It is an investigation of Uniswap.
Opensea: Similarly, Opensea, one of the largest Nft marketplaces, where announced in August 2024 that SEC examined whether some NFT on its platform would be classified as securities but Sec canceled The survey on February 21, 2025.
Each of these companies spent years and millions of dollars in legal fees that fought against SEC. Now, apparently overnight, the regulatory threats they have met have disappeared. So, what changed?
There has been a major change in Sec’s strategy for Crypto regulationAnd although this may seem like a profit for digital asset companies, reality is much more complex.
SEC’s cryptop policies
In the past SEC -Chairman Gary GenslerThe agency took an aggressive position against crypto. Gensler repeatedly pronounced that Existing securities laws already covered most crypto assets And that many industry players failed to follow. His strategy emphasized enforcement of guidance, which led to a wave of moods and investigations that put large crypto companies in hot water.
One of these companies was Coinbase, who tried to shoot back and asked Sec for clearer regulatory guidelines. However, the agency refused to provide them, which led to a federal court criticizing the Sec’s actions and called their refusal “arbitrarily and funny.” Subsequently, the Court ordered the Sec to give a more detailed explanation for its refusal to offer guidance – an order that the agency never met because before it had a chance to do so, it was a change in SEC leadership.
Gensler’s departure Initiated a new era of crypto politics, characterized by a hands-off strategy that is much different from Sec’s enforcement tactics from the past.
Trump’s pro-crypto administration
President Donald Trump fought on a pro-cryptop platform And as soon as he won the election, he began making pro-crypto America that he talked about to reality. He created a new “Crypto Czar” role in the White House and appointed Venture Capitalist David Sacks To the position to develop a clear regulatory framework for the industry, something that the previous administration had failed.
On his third day in the office, Trump signed “Strengthen American leadership in digital financial technology ” executivethat demanded the formation of a Crypto working group. The working group aims to clarify how federal securities law applies to crypto assets and recommend policies that encourage innovation while protecting investors.
At nominal value, this shift seems to be exactly what the industry has asked for: less government involvement and clearer guidelines. In practice, however, the effects of these changes have been much different from those they had in theory.
When rumors of regulatory relief first appeared, the crypto market responded enthusiastically. Prices rose in anticipation of a more business -friendly environment. But when these changes were officially implemented, reality did not really match expectations, and market prices have dropped rapidly.
Instead of stimulating new business activity, the change in regulation has led to increased market speculation and an increase in dubious projects – initiative Consumers have invested in and lost money Unless they can sell hours after the project first. With fewer legal roadblocks, an influx of new tokens, NFT and Decentralized funding (Defi) Projects have appeared up-many lacking real usability and is similar to games with high stakes.
Does the wild west are crypt again?
One of the biggest problems coming from SEC’s new hands-off strategy is the increase in fraudulent activity. While crypto companies like Coinbase and Robinhood are now free to work without regulatory disorders, the lack of surveillance has also created a breeding ground for Fraud and pump-and-dummy schedules.
Hester Peirce, Head of SEC’s Crypto Task Force, recently abandoned That SEC does not have jurisdiction over most crypto assets, including many coins, tokens and NFT. This raises an important question: If Sec is not the controller, who is it then?
Right now there is no clear answer, which has made the industry a bit of a free for everyone.
During the days leading up to Trump’s inauguration, for example, both he and his wife Melania launched their Memecoins. Tokens were marketed as fun, community -driven projects that were not intended to be investment. Still, a large number of people saw tokens as a trade opportunity, invested and have experienced each token 80+% reduction from its highest times. Many of their followers lost money, while insiders earned – no regulatory body has yet entered to investigate.
Where does crypto go from here?
SEC’s conversion of crypto enforcement has opened the door for industry growth. However, instead of incubating legitimate business expansion, it has primarily created an environment where speculation and goat-rich fast schedules thrive.
So, what is the solution? I think a return to the Gensler era degradation is not the answer. That strategy suffocated innovation, ran companies completely out of the US and got many others to turn off their business. But the current free for everyone in the market is also not sustainable.
At this point, meaningful change will not come from the supervisory authorities alone. Their role is to create policies that either limit or enable industry growth. It is up to digital asset companies themselves that show fair value In addition to speculative trade. If the industry wants long-term legitimacy, it must go beyond the casino-like atmosphere and focus on building services and tools that offer concrete benefits and creating-scarre than extracts and redistribute users for users.
Watch: Reggie Middleton at Defi, Booms/Busts & Crypto Regulation
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