US Securities and Exchange Commission (SEC) Commissioner Mark Uyeda announced that the agency dismissed several major lawsuits against cryptocurrency companies at the start of 2025, citing concerns over the SEC’s credibility in ongoing litigation. Uyeda made the remarks during a panel at the Psaros Center for Financial Markets and Policy’s Financial Markets Quality Conference on Wednesday.
Shift in SEC Approach Toward Crypto Regulation
Uyeda, who served as acting chair of the SEC from January to April 2025 before Paul Atkins’ appointment, revealed that the SEC prepared a sweeping policy reversal in its oversight of the crypto industry during his tenure. He described the agency’s planned “180-degree change” in how it formulates rules governing digital assets.
According to Uyeda, several civil cases targeting crypto firms had been authorized under the previous SEC administration, led by Gary Gensler. With policy shifts expected, there was a risk that SEC attorneys might be required to argue court positions inconsistent with the agency’s evolving stance.
Uyeda stated, “I’m not about to have our litigators, even though they’re having cases that were authorized under the prior administration, stand up in court and have a commission interpretation be issued that is a 180-degree change from what they’d been arguing for that court. I think that hurts our credibility as an agency.”
He emphasized that serious questions had emerged regarding the legal justification for some of the crypto-related cases, prompting a review of existing litigation strategies.
High-Profile Case Dismissals and Industry Criticism
Under Uyeda’s leadership, the SEC withdrew lawsuits against several prominent digital asset platforms, including Kraken, Ripple Labs, and Coinbase. All three companies play significant roles in the global cryptocurrency market. Kraken and Coinbase are leading US-based crypto exchanges, while Ripple Labs develops products focused on blockchain-based payment solutions.
Some critics have suggested the SEC’s decisions were influenced by the crypto industry’s vocal support of President Donald Trump’s 2024 election campaign. Trump had previously pledged to remove Gensler from his role as SEC chair if elected. Gensler resigned on the day Trump assumed the presidency in January 2025.
Observers questioned whether the dismissals were intended as “payback” for the crypto sector’s alliance with Trump rather than the result of legal considerations.
Notably, the majority of the dropped cases originated during Gensler’s tenure. His departure coincided with the shift in the SEC’s regulatory approach toward crypto businesses.
Challenges Facing SEC Leadership and Staffing
Since 2022, Mark Uyeda has served as an SEC commissioner and currently sits on the commission’s leadership panel, alongside Chair Paul Atkins and Commissioner Hester Peirce. The SEC is structured to include five members, but only three seats are filled at present.
Peirce is expected to leave the SEC in November, which would reduce the commission to just two active members—an unprecedented scenario. So far, President Trump has not nominated candidates to fill the remaining commission seats.
The shrinking number of commissioners could impact decision-making and the pace of regulatory actions at the SEC, especially during a period of significant policy transition for the crypto industry.
