SEC Drops Hammer—Then Drops Case Against Dragonchain as DRGN Token Doubles
The U.S. Securities and Exchange Commission just folded its hand against blockchain firm Dragonchain—abruptly moving to dismiss its own lawsuit. Cue the market frenzy: DRGN token skyrocketed 100% in 24 hours on pure regulatory relief hype.
Regulators blinked—but was this a win for crypto, or just another case of ’sell the news’ waiting to happen? Traders piled in, but let’s see how many hodl once the lawyers cash their checks.
One cynical take: Nothing makes a token pump like the SEC realizing it picked the wrong fight. Meanwhile, Bitcoin ETFs still can’t get a lunch meeting in D.C.
Trump’s Reelection Triggers Softer SEC Stance on Crypto Regulation
Under former Chair Gary Gensler, the SEC pursued aggressive enforcement actions against numerous crypto projects, asserting that many digital assets qualified as unregistered investment securities.
However, with President Donald Trump’s reelection and Gensler’s departure, the SEC has softened its stance on cryptocurrency regulation.
The newly formed Crypto Task Force has focused on clarifying which digital assets fall outside the agency’s jurisdiction, recently stating that most meme coins are not considered securities.
NEW from me: SEC Drops Dragonchain Lawsuit in Latest Crypto Enforcement Reversal
“We finally have the right to innovate without fear,” @dragonchain founder @j0j0r0 told me.
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“In light of the foregoing, and in the exercise of its discretion and as a policy matter, the Commission believes the dismissal of this case is appropriate,” the SEC noted in its filing.
The news of the dismissal sparked a sharp rally in Dragonchain’s native token, DRGN, which surged more than 100% in the past 24 hours, reaching $0.07898, according to CoinMarketCap.
Crypto-Friendly Paul Atkins Sworn as SEC Chair
As reported, Paul Atkins was sworn in as Chairman of the SEC on Monday, marking a leadership shift that is being welcomed by the digital asset industry.
Under Atkins’ leadership, the SEC has already withdrawn or delayed several prominent cases against crypto firms.
The agency dropped its lawsuits against Coinbase and Cumberland DRW earlier this year, and a separate investigation into Uniswap Labs closed in February without enforcement action.
Last week, the agency also closed its investigation into CyberKongz, a prominent Ethereum-based NFT and gaming project, with no enforcement action taken.
More recently, the SEC announced it would not pursue further legal action against Richard Schueler, better known as Richard Heart, the founder of Hex, PulseChain, and PulseX.
SEC attorney Matthew Gulde informed New York District Court Judge Carol Bagley Amon that the regulator would not file an amended complaint following the court’s earlier dismissal of its case.
Judge Amon had thrown out the SEC’s initial complaint on February 28, citing a lack of jurisdiction, as Heart’s activities were deemed not specifically directed at U.S. investors.
