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

Key Takeaways

• The SEC has withdrawn or paused multiple lawsuits against crypto companies.
• Cases against Uniswap, 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 interim SEC Chair Mark Uyeda, with Commissioner Hester Peirce playing a key role, 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.

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. Earlier, the SEC dropped lawsuits against Coinbase, Gemini, and Robinhood and paused its lawsuit against Binance.

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.

Binance

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

The case, which accused the exchange of violating securities laws, is now in limbo, pending the introduction of new guidelines.

The task force created under Peirce is expected to play a key role in drafting a comprehensive rulebook for the industry.

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 emerges 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, the leading decentralized exchange, 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.

Crypto Lawsuits To Be Dropped Next?

With the SEC’s 60-day review period set to conclude on March 23, legal experts believe additional lawsuits could be on the chopping block. Among them:

Bittrex

The SEC sued Bittrex in April 2023, accusing the exchange of offering unregistered securities.

The case forced Bittrex to wind down its U.S. operations, adding to the growing list of exchanges retreating from the American market.

If regulators continue to back off from enforcement actions, the exchange may be able to resolve its legal troubles or even reenter the market under a friendlier regulatory regime.

Ripple

The long-running battle between Ripple and the SEC may soon come to an end.

Former SEC enforcement chief John Reed Stark has suggested that the agency is preparing to withdraw its appeal in the high-profile case, signaling a broader retreat from its aggressive stance on crypto enforcement.

The lawsuit, which accused Ripple of selling unregistered securities through its XRP token, became a defining legal battle for the industry. A partial court ruling in 2023 determined that XRP was not necessarily a security in all circumstances, dealing a major blow to the SEC’s argument.

With the SEC retreating from similar enforcement actions, Ripple’s case may be nearing its conclusion—potentially influencing how digital assets are classified in the U.S. in the future.