On March 5, 2026, Justin Sun reached a $10 million settlement with the US Securities and Exchange Commission (SEC), resolving the civil fraud allegations that had been brought against him. US regulators accused Sun of conducting $31 million in unauthorized transactions and failing to disclose promotions carried out alongside various celebrities. With the settlement submitted for court approval, the lengthy case is now expected to be formally closed.
Regulatory Easing Reshapes the Crypto Landscape
On the same day, US banking authorities clarified that banks holding tokenized securities would not be subject to additional capital requirements distinct from those for traditional assets. This move was widely interpreted as the removal of yet another regulatory barrier facing the crypto industry, setting the stage for renewed growth and innovation across the sector.
Under President Donald Trump’s administration, the US has seen a marked softening of legal pressure on numerous high-profile crypto players over the past year. In May 2025, the SEC decided to dismiss its civil case against Binance, and the company’s former CEO, Changpeng Zhao, evaded criminal penalties through a presidential pardon issued by Trump in October 2025. Zhao had previously been convicted of money laundering and served a brief prison sentence before benefitting from the pardon.
According to a letter sent by House Democrats, at least 12 crypto-related lawsuits have been dropped in the US since early 2025. The letter also noted that crypto ventures with close ties to Trump have enjoyed significant financial gains during this period.
Crypto Entities Linked to the Trump Family Gain Momentum
Data compiled by Reuters showed that the Trump Organization’s revenue reached $802 million in the first half of 2025, with a substantial share coming from token sales overseen by World Liberty Financial. The firm’s revenue model directs 75 percent of proceeds from these token sales—after operational costs—to an entity associated with the Trump family.
World Liberty’s introduction of the USD1 stablecoin in March 2025 further expanded its revenue streams, thanks to its collateralized reserve model. By February 2026, USD1 had entered circulation with a market size of around $4.4 billion, ranking as the world’s sixth-largest stablecoin. Particularly noteworthy was a $2 billion investment by MGX in Binance, which resulted in a significant portion of USD1 supply being concentrated in a single wallet during the early phase.
Justin Sun became a major backer of the World Liberty token presale, acquiring at least $75 million worth and joining the firm’s advisory team. Reports also surfaced of Sun’s active involvement in the TRUMP-themed memecoin ecosystem, with wallets allegedly linked to Sun participating in HTX-related transactions.
Legal Shifts and Market Dynamics
The recent trend towards a more conciliatory regulatory approach has affected not only individual projects but the broader US crypto market as a whole. In February 2026, the Bank for International Settlements highlighted the direct impact of on-chain stablecoin transactions on government bond yields, while the European Central Bank released examples of how stablecoins were influencing bank deposit levels.
Efforts to advance new legislation in the US have run into obstacles, with bank opposition to stablecoins and ethical debates emerging as primary hurdles. Despite tangible progress in the regulatory environment, experts caution that ventures tied to Trump may still grapple with long-term legal and reputational risks.
SEC Chair Paul Atkins stated in February 2026 that the agency had increased its hiring, responding to allegations that crypto cases were being closed due to political interference. Atkins emphasized that most decisions had been made prior to his appointment, underscoring that the regulatory relaxation in the US differed noticeably from regulatory models in countries like the United Kingdom.
