The US Securities and Exchange Commission (SEC) is dropping another lawusit against a crypto firm. This time, the regulator is dropping charges against Dragonchain, a blockchain project it had accused of selling unregistered securities.
In a filing on April 24, both sides agreed to dismiss the case with no extra costs or penalties. The SEC said its Crypto Task Force helped establish clarity on its crypto policies, making the lawsuit no longer necessary.
SEC drops the case against Dragonchain. 
https://t.co/9rw6xM3owb pic.twitter.com/sLwQZ6aTYC
— Dragonchain (@dragonchain) April 26, 2025
Dragonchain faced legal issues in 2024 when the SEC claimed it raised $16.5 million illegally by selling DRGN tokens. The bulk of the money came from a 2017 token sale, and the rest was collected over the next few years to fund the company’s operations. The SEC argued that the tokens needed to have been registered as it considered them investment contracts.
The case had been frozen for months while Dragonchain tried to settle. However, President Trump’s crypto-focused executive order made things even slower. Since then, the SEC has adopted a softer approach to crypto regulation, backing away from older lawsuits against crypto firms.
The SEC withdraws its case with prejudice against @dragonchain! This is a major victory for blockchain innovation, fair regulation, and decentralization in the U.S.
For too long, regulators have stifled innovation instead of embracing it. Now is the time to integrate… https://t.co/zjIJGzTAsN
— Dragonchain (@dragonchain) April 26, 2025
SEC changes its approach
This move to dismiss the Dragonchain case comes amidst a broader shift in the SEC’s approach to crypto enforcement. Under former Chair Gary Gensler, the SEC took an aggressive stance, pursuing major cases against Coinbase, Kraken, Ripple, and other big players. Gensler’s era was marked by an enforcement-heavy strategy, often leaving the industry frustrated over unclear rules and hostile actions.
However, things have changed under the Trump administration’s push for a more crypto-friendly environment. The SEC has also dismissed lawsuits against Coinbase, Ripple, and Kraken. Additionally, the regulator dropped investigations into firms like OpenSea, Crypto.com, and Immutable. The focus is now shifting toward building clearer regulatory frameworks instead of regulating through lawsuits.
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