- The SEC has officially dropped its lawsuit against blockchain firm Dragonchain, marking another shift in crypto regulation.
- Dragonchain was accused of raising $16M through an unregistered ICO, violating securities laws under previous SEC leadership.
- New SEC Chair Paul Atkins is expected to outline his regulatory stance at today’s Crypto Roundtable, shaping future enforcement.
The U.S. Securities & Exchange Commission has officially dropped its lawsuit against the blockchain firm Dragonchain. According to a report from CryptoInAmerica, the agency filed to dismiss the case in a federal court on April 24—marking the end of yet another legal battle against the crypto industry.
What Originated the Lawsuit?
In August of 2024, the SEC under Chairman Gary Gensler sued Dragonchain, accusing the company of raising over $16 million through an unregistered initial coin offering (ICO) of its native token $DRGN.
According to regulators at the time, Dragonchain violated securities laws, claiming that DRGN was marketed as an investment, therefore categorizing it as“investment contracts”, a.k.a. Securities.
SEC Waiting For Atkins and Crypto Task Force Regulations
Over the past week, the SEC has been dropping several crypto-related cases. Although the new administration has indeed been less strict when it comes to regulatory enforcement—the most recent trend from the Commission appears to be to just “wait it out”, in anticipation of the new regulatory framework to be presented by its “Crypto Task Force”.
Moreover, Paul Atkins has just stepped in as SEC Chair. Instead of rushing into major decisions, regulators seem to be taking a wait-and-see approach, holding off on enforcement until they get a clearer sense of his direction.
Atkins is set to speak today at the Crypto Roundtable, where he’s expected to outline his approach to crypto regulation, with potential enforcement actions on the horizon.
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