Ex-SEC Acting Chair Says Agency Dropped Crypto Cases to Preserve Credibility

SEC Commissioner Mark Uyeda explained that the U.S. Securities and Exchange Commission discontinued several civil actions against cryptocurrency firms in early 2025. He said the moves were intended to protect the agency’s credibility ahead of a major shift in its rulemaking approach.

Reason for Dropping Cases

Uyeda told a panel at the Psaros Center for Financial Markets and Policy’s Financial Markets Quality Conference that continuing the lawsuits could have undermined the SEC’s ability to argue new policy positions in court. He warned that litigators would be forced to defend interpretations that were about to be reversed, which would damage the agency’s standing.

Companies Affected

The discontinued actions involved major crypto entities, including Kraken, Ripple Labs, and Coinbase. The cases had been initiated under the previous administration.

Context and Leadership Changes

Uyeda served as acting SEC chair from January to April 2025, before Paul Atkins’s confirmation. He has been a commissioner since 2022 and currently works alongside Atkins and Commissioner Hester Peirce. Peirce’s expected departure in November will leave only two of the five commission seats filled, with no announced nominations to replace the vacant positions.