Ex-SEC Acting Chair: Agency Dropped Crypto Cases to Protect Credibility
Mark Uyeda, who acted as SEC chair before Paul Atkins was confirmed, revealed why the SEC dropped civil cases against crypto companies filed under the previous administration. Uyeda explained that the agency was preparing a major shift in policy and continuing lawsuits could harm its credibility in court. Among the companies with dismissed cases were Kraken, Ripple Labs, and Coinbase.
Reasons Behind Dropping Crypto Lawsuits
At the Psaros Center's conference, Mark Uyeda explained that the SEC dropped lawsuits against several cryptocurrency firms in early 2025 due to the agency preparing a comprehensive 180-degree policy shift. Continuing with existing cases would have conflicted with this planned change.
Uyeda pointed out that if SEC litigators continued advocating previously established positions, while the commission altered its rule interpretations, it would damage the agency's credibility before the courts and the public. He also expressed significant doubts about the legal justification of some cases against crypto companies.
Cases and Political Context
During Uyeda's tenure as acting SEC chair from January to April 2025, the commission dropped cases involving Kraken, Ripple Labs, Coinbase, among others. Critics argued these moves were retaliatory because the crypto industry had backed Donald Trump’s 2024 presidential campaign.
Trump had vowed to terminate SEC Chair Gary Gensler on his first day if elected; Gensler resigned on Trump’s inauguration day. Some viewed the dismissal of cases as an alignment of SEC leadership with the new administration's political stance and expectations.
Current SEC Composition and Outlook
Mark Uyeda has served as an SEC commissioner since 2022, joining leadership alongside Paul Atkins and Hester Peirce. Peirce is expected to depart in November 2025, leaving only two of the five commissioners in leadership roles.
So far, no nominations have been announced to fill the upcoming vacancies, creating uncertainty regarding the SEC’s future direction and its regulatory approach toward the cryptocurrency industry.
Why it matters
This news is significant because it reveals how political shifts and internal SEC strategies directly impact litigation and regulation of the U.S. cryptocurrency sector. The dropping of cases against major crypto firms signals a policy pivot and highlights tensions between the regulator and the industry. It affects market participants’ trust in the SEC and sets the stage for future regulatory reforms and legal challenges in digital asset management.
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