SEC Says It Dropped Crypto Lawsuits to Prepare for Sweeping Policy Shift

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The U.S. Securities and Exchange Commission said its decision to drop lawsuits against major crypto companies last year was aimed at preparing for a sweeping shift in regulatory policy.

SEC Commissioner Mark Uyeda, speaking at a financial markets conference at Georgetown University on Sept. 24, explained why the agency withdrew the cases it had brought against crypto firms last year. Continuing to pursue those lawsuits while the SEC was preparing a 180-degree turn in its regulatory approach could have damaged the agency's credibility, he said.

Uyeda also said there were serious doubts about whether the crypto-related lawsuits filed under the previous administration were legally justified. The agency wanted to avoid announcing a new policy while arguing the exact opposite position in court.