The U.S. Securities and Exchange Commission has acknowledged and clarified the "flaws" of its past enforcement actions, singling out seven crypto-related cases the agency now views as a "misinterpretation" of the federal securities laws.
In a statement released Tuesday, the SEC said that it had brought 95 actions and $2.3 billion in penalties against firms for "book-and-record violations."
"Together with seven crypto firm registration-related and six 'definition of a dealer' cases, these cases identified no direct investor harm from those violations, [and] produced no investor benefit or protection," the SEC said.
The agency added that it now views the pattern as "a misinterpretation of the federal securities laws," and acknowledged it had misallocated its resources. The SEC also pointed out an institutional bias toward case volume rather than genuine investor protection.
According to the statement, the SEC has dismissed seven crypto-related enforcement actions since February 2025 — specifically those against Coinbase, Binance, Cumberland, Consensys Software, Payward (Kraken), Dragonchain, and Balina.
"In fiscal year 2025, the Commission made a necessary course correction in its approach to enforcing the federal securities laws in the context of crypto assets," the SEC added.
Pro-crypto pivot
The SEC's latest statement reflects a broader pro-crypto pivot under the Trump administration. SEC Chair Paul Atkins, who took office in April 2025, has criticized the agency's previous leadership, arguing that the SEC failed to adapt to innovation.
In February, Atkins said the SEC is working to regain momentum on crypto oversight, describing its previous approach as a "big missed opportunity" under the prior administration.
The agency has taken steps to implement its pro-crypto agenda. In January, the SEC and the Commodity Futures Trading Commission joined forces to launch "Project Crypto," an initiative to modernize crypto regulation.
Both agencies have also clarified ambiguity in a guideline released last month, saying that most digital assets are not securities.
"After more than a decade of uncertainty, this interpretation will provide market participants with a clear understanding of how the Commission treats crypto assets under federal securities laws," Atkins said at the time.
Atkins has also put forward a safe harbor proposal that would create a "startup exemption" to allow crypto stakeholders to raise capital while maintaining investor protection. The SEC chair said Monday that the proposal has reached the Office of Information and Regulatory Affairs, which reviews federal regulations before publication.
