SEC Crypto Reversals: Every Case It Dropped in 2025 and the Legal Battles Still Ahead

Key Takeaways

• The SEC has finally dismissed the long-running lawsuit against Binance.
• The SEC has withdrawn or paused multiple lawsuits against crypto companies.
• Cases against Ripple, Robinhood, and Coinbase have been dropped.
• Analysts expect more lawsuits to be rolled back in the coming weeks.

The U.S. Securities and Exchange Commission (SEC) is rapidly unwinding its aggressive legal campaign against the crypto industry.

Under the new SEC Chair Paul Atkins, with Commissioner Hester Peirce and Mark Uyeda playing key roles, the agency is dropping lawsuits at a pace that outstrips those filed during former chair Gary Gensler’s tenure.

A Swift Reversal Under the Trump Administration

The shift follows an executive order from President Donald Trump aimed at reshaping crypto regulation.

Issued in the administration’s first week, the order prohibited the creation of a central bank digital currency (CBDC), established a crypto-focused task force and set the groundwork for clearer industry rules.

With a 60-day window for regulatory agencies to revise or repeal existing rules, the SEC has already dropped multiple lawsuits, mainly those tied to the classification of digital assets as securities.

SEC Lawsuits Dropped in 2025

As part of its pivot, the SEC has walked away from several high-profile legal battles, signaling a broader shift in enforcement strategy.

Binance

On Feb. 12, the SEC and Binance filed a joint motion to pause their litigation for 60 days, citing the need for greater regulatory clarity.

The lawsuit, which accused the exchange of violating U.S. securities laws, remained in limbo as the industry awaited new federal guidelines.

Now, nearly four months later, the SEC and Binance have jointly moved to dismiss the case with prejudice, a legal term meaning it cannot be refiled.

The motion marks a formal end to a two-year standoff that had barred Binance from offering services in the U.S.

During the same period, the SEC under the Trump administration has also dropped nearly a dozen other investigations into alleged crypto securities violations.

Crypto.com

The SEC has closed its investigation into Crypto.com without taking enforcement action, making the exchange one of the few major crypto firms to emerge unscathed under the new Trump administration.

The SEC had sent Crypto.com a Wells Notice in October 2024, signaling potential enforcement.

In response, the exchange filed a lawsuit against the agency, which it later dropped in December. Three months later, the SEC has now abandoned its case entirely.

Crypto.com is now the only full-service global cryptocurrency exchange that has not been sued by the SEC, nor have any allegations been settled with the regulator.

Ripple

The Ripple vs. SEC is one of the oldest securities lawsuits, filed in December 2020. Nearly four years later, both parties agreed to end the case.

As part of the agreement , Ripple will withdraw its appeal and pay $50 million of the $125 million fine originally imposed by the court.

In return, the SEC will ask Judge Analisa Torres to lift the “obey the law” injunction placed on the company.

The case will officially close once the Commission votes on the settlement and the necessary court filings are completed.

The lawsuit, filed in December 2020, saw both sides claim partial victories.

Ripple secured a landmark ruling when Judge Torres determined that XRP sales to retail investors did not constitute securities transactions.

However, the SEC prevailed on the institutional front, with the court ordering Ripple to pay penalties for its direct sales to institutional investors.

The settlement resolves one of the most closely watched legal battles in the crypto space, one that has shaped the regulatory landscape for digital assets in the United States.

Immutable

The SEC has dropped its investigation into Web3 gaming platform Immutable, marking a significant win for the company.

Immutable, which received a Wells Notice from the SEC in November 2024, was among the last crypto firms to face scrutiny under outgoing SEC Chair Gary Gensler.

While the agency never disclosed specifics about the probe, Immutable believed it stemmed from the 2021 listing and sale of its native IMX token.

The company hailed the SEC’s decision as a victory for Web3 gaming and the push for true digital ownership in virtual economies.

It also framed the outcome as validation of its commitment to legal and regulatory compliance.

Yuga Labs

On March 4, Yuga Labs announced that the SEC had officially closed its investigation into the company, ending a nearly three-year probe into its NFT offerings.

The decision marks a significant moment in the ongoing debate over whether non-fungible tokens (NFTs) should be classified as securities.

While the SEC has not publicly commented on the matter, the closure of the case suggests that, at least for now, the agency does not consider Yuga’s NFTs to fall under its jurisdiction.

Kraken

On March 3, Kraken announced that the SEC staff had agreed in principle to dismiss its lawsuit against the exchange, with no admission of wrongdoing, no penalties, and no changes to its business.

Kraken joins the growing list of crypto exchanges seeking relief from SEC enforcement action and lawsuits filed under the Biden administration.

The SEC sued Kraken in November 2023 for allegedly offering unregistered securities, a case that the exchange has fought vigorously in court.

Consensys

In a significant development on Feb. 28, Consensys and the SEC reached an agreement in principle to dismiss the case concerning MetaMask.

The agency is expected to file a stipulation with the court, effectively closing that aspect of the lawsuit.

The regulator had charged the Ethereum-focused blockchain company with securities violations related to its staking services and crypto-swapping features.

Justin Sun and Tron

Justin Sun, the Tron Foundation, and the SEC jointly moved to halt their ongoing legal battle, according to a Feb. 26, 2025, filing reported by Inner City Press.

The SEC filed a lawsuit in 2023 in the Southern District of New York, accusing Sun and his companies of securities violations. While the details remain undisclosed, the motion to stay proceedings suggests both sides may consider a settlement.

Gemini

Gemini and its former partner, Genesis Global Capital, found themselves in the SEC’s crosshairs over their Gemini Earn lending program, which the agency claimed amounted to the unregistered offer and sale of securities.

The lawsuit became part of the broader regulatory crackdown on crypto lending platforms.

Gemini co-founder Cameron Winklevoss announced on Feb. 27 that the SEC has closed its investigation into the exchange and will not pursue enforcement action.

The decision comes nearly a year after Gemini received a Wells notice, signaling a potential lawsuit over alleged securities law violations.

Winklevoss called the outcome a major milestone for the crypto industry, marking what he described as the end of the SEC’s “war on crypto.”

OpenSea

The Security agency closed its investigation into NFT marketplace OpenSea on Feb. 22, just hours after it gave clearance to Coinbase.

The SEC issued a Wells notice to OpenSea in August last year, alleging that the sale of NFTs violates securities law and implying that NFTs qualify as securities.

OpenSea co-founder Devin Finzer called it a major win for the platform and the entire industry, as classifying NFTs as securities would have been a step backward.

He added that every creator, big or small, should be able to build freely without unnecessary barriers.

Coinbase

On Feb. 21, Coinbase CEO Brian Armstrong announced that the SEC had agreed to drop its lawsuit against the exchange.

The regulator had accused Coinbase of offering unregistered securities and acting as an unlicensed broker-dealer—charges that, if upheld, could have reshaped the entire industry.

The decision follows the administration’s broader pivot toward a more industry-friendly regulatory framework for digital assets.

Robinhood 

On Feb. 21, Robinhood announced that the SEC had formally closed its investigation into the company’s crypto operations and opted not to pursue any charges.

The fintech giant had faced scrutiny over potential securities law violations tied to its crypto offerings.

With the case now dismissed, Robinhood emerged unscathed, just as crypto cements itself as a critical pillar of its growth strategy in 2025.

Uniswap

On Feb. 25, the SEC officially closed its investigation into Uniswap without bringing any charges.

The investigation, which started after Uniswap received a Wells Notice in April 2024, raised concerns about potential enforcement action tied to its crypto trading and token-swapping services.

With the case now dropped, Uniswap hailed the decision as a major victory for the DeFi sector—one that could set a precedent for the broader industry as regulatory winds shift.