As soon as the previous SEC leadership stepped down—particularly former Chair Gary Gensler—Acting Chair Mark Uyeda, appointed by President Donald Trump, began reassessing the agency’s legal stance on digital assets. Now, the SEC is withdrawing lawsuits against several crypto firms that it had previously “cooked up” under the old administration.
In February 2025, the U.S. Securities and Exchange Commission (SEC) initiated a wave of lawsuit withdrawals against major crypto companies, signaling a major shift in its regulatory approach.
Case Against Coinbase Dismissed
Coinbase has finally been freed from its long-running legal battle with the SEC, as the agency agreed to drop the case.
The lawsuit was one of the most significant legal challenges for the U.S.-based exchange, raising fundamental questions about what qualifies as a security in crypto and when (and how) digital asset exchanges should register with the SEC. However, these questions remain largely unanswered and will ultimately need to be addressed by the U.S. Congress.
MetaMask Lawsuit Withdrawn
Joe Lubin, CEO of Brooklyn-based crypto software company ConsenSys, announced on Thursday that the SEC had agreed to dismiss its enforcement case against the MetaMask wallet.
Last June, the SEC sued ConsenSys over MetaMask, alleging that the popular crypto wallet functioned as an unregistered securities broker and was engaged in the “offering and sale of securities.”
Widespread Case Withdrawals
The SEC is now withdrawing the lawsuits and backing away from its previous “regulation by enforcement” strategy, which was aggressively pursued under former Chair Gary Gensler.
The regulator has closed its investigation into the crypto-related operations of the popular trading platform Robinhood. On February 25, the agency officially ended its probe into the leading decentralized exchange Uniswap. Additionally, on February 12, the SEC and Binance jointly filed a motion to pause legal proceedings for 60 days.
On February 27, the SEC issued new guidance on meme coins, defining them as “a type of crypto asset inspired by internet memes, characters, current events, or trends, where promoters aim to attract an engaged online community to buy and trade them.” The SEC’s new leadership now categorizes meme coins as more akin to collectibles than securities.
Since they often have “limited or no utility,” they do not meet the criteria of the Howey Test and thus fall outside the SEC’s jurisdiction. However, while Commissioner Hester Peirce emphasized that U.S. investors are responsible for conducting their due diligence before purchasing tokens, the SEC did not rule out enforcement action if meme coins are used to circumvent securities laws.
Conclusion
While the SEC maintains that it will continue to crack down on fraud in the crypto space, its new approach promises more transparency and constructive engagement with the industry. The Crypto Task Force is expected to develop a comprehensive regulatory framework that will provide clarity for market participants while ensuring investor protection.
“It’s time for the Commission to rethink its approach and craft a more transparent policy on cryptocurrencies,” stated Acting SEC Chair Mark Uyeda.
