In a swift reversal of policy, U.S. regulators have largely retreated from a years-long crackdown on the cryptocurrency industry, a sector known for its volatility, potential for fraud, and instances of theft. The change occurred just over a month after the new President took office.
Federal officials have signaled that they will not be enforcing strict oversight of so-called memecoins, according to sources. Several investigations into major cryptocurrency firms have been suspended, and the Securities and Exchange Commission (SEC) agreed to halt a fraud case against a prominent figure in the crypto world.
This shift follows campaign promises made by the former President last year, when he actively sought donations from crypto investors and promoted his own digital currency. Surprisingly, the industry has seen this many favorable changes in such a short timeframe.
Last week, the SEC agreed to drop its long-running lawsuit against Coinbase, the largest cryptocurrency company in the United States. Shortly after, executives from crypto firms like Gemini, OpenSea, and Uniswap Labs announced that the agency had stopped investigating their companies. An executive at Consensys confirmed that the SEC had agreed to withdraw a lawsuit targeting one of the company’s popular products.
“This marks another milestone to the end of the war on crypto,” said Cameron Winklevoss, a founder of Gemini, in a post on X. “I’m glad to be turning the page here.”
