While the U.S. Securities and Exchange Commission (SEC) under Gary Gensler preferred regulation through enforcement, the new SEC administration is adopting a more lenient approach towards cryptocurrencies.
At this point, the new SEC under the Trump administration prefers to regulate cryptocurrencies through legal means rather than through sanctions.
In its announcement regarding enforcement results for 2025, the SEC stated that it has initiated 95 cases and imposed $2.3 billion in fines for violations since fiscal year 2022.
However, the SEC has acknowledged the flaws and failures in some of its past enforcement actions against crypto companies, and that these actions did not provide a clear benefit to investors.
The SEC added that its enforcement actions stemmed from a misinterpretation of federal securities laws.
The SEC also stated that no penalties were imposed in the case filed against seven cryptocurrency companies.
These seven lawsuits include those filed against Coinbase, Binance, Cumberland, Consensys Software, Payward (Kraken), Dragonchain, and Balina.
“In the lawsuits filed against seven cryptocurrency companies, no direct investor harm resulting from the alleged breaches was found [and] no benefit or protection was provided to investors.”
The SEC also noted that some cases tend to prioritize the number of enforcement actions over actual investor protection.
In contrast, SEC Chairman Paul Atkins, who took office in April 2025, criticized the agency’s previous leadership, arguing that the SEC had failed to adapt to innovation.
Atkins states that instead of pursuing a strategy focused on increasing case numbers or imposing record-breaking fines, the agency will now concentrate on illicit activities such as fraud, market manipulation, and breach of trust.
*This is not investment advice.
