In its recent statement, the US Securities and Exchange Commission (SEC) stated that there were deficiencies in some of its past practices regarding crypto assets. The SEC acknowledged misinterpretation of federal securities laws in lawsuits against seven crypto companies.
Emphasis on mistakes in past cases
In the published document, the SEC announced that 95 separate actions have been initiated against different companies within the scope of the obligation to keep records and documents, and a total penalty of 2.3 billion dollars has been imposed. The Commission argued that in this process, which included lawsuits filed against seven crypto companies, there could be no direct investor damage, and likewise, no protection or benefit was provided to the investor.
In the evaluation made by the SEC, it was reported that such cases in the past arose as a result of misinterpretation of the definitions in federal laws, which led to the misuse of Commission resources. It was also noted that there was not enough focus on real investor protection due to the priority given to the size of the file volume.
It was announced that seven crypto-focused cases were dropped as of February 2025. These cases included processes against Coinbase, Binance, Cumberland, Consensys Software, Payward (Kraken), Dragonchain and Balina companies. The Commission pointed out that necessary changes have been made in practice regarding crypto assets as of the 2025 fiscal year.
New approach and management policies
Recent developments show that the US administration is moving towards a more positive approach towards crypto in general. After SEC Chairman Paul Atkins took office in April 2025, new policies began to come to the fore under the leadership of the institution. Atkins emphasized that the Commission has not been able to keep up with innovations in the past and therefore opportunities have been missed.
In a statement in February, Atkins stated that they were working to restructure the SEC’s oversight of crypto assets and that he believed previous practices were a significant waste of opportunity.
In January, the SEC, together with the US Commodity Futures Trading Commission (CFTC), launched a new regulatory initiative called “Crypto Project”. This step aims to create a more updated and coordinated regulatory policy in the crypto space.
In the guide published last month, both organizations shared the assessment that the majority of digital assets are not considered securities. Atkins stated that thanks to the new approach, market actors will be able to comply with the regulations more clearly.
“After more than a decade of uncertainty, this interpretation will provide market participants with a clear framework for how crypto assets will be valued under securities laws.”
He expressed his views as follows.
Paul Atkins also floated a proposal for a “venture exemption” that would make it easier for crypto companies to raise funds while maintaining investor protection. Atkins noted that the draft being prepared has now been forwarded to the review of the relevant office where federal regulations are audited before publication.
