The U.S. Securities and Exchange Commission (SEC) has filed a joint stipulation with Dragonchain on Thursday to dismiss the lawsuit against the firm. The SEC cited the launch of its Crypto Task Force as the reason for dropping the litigation. The initial complaint, filed in August 2022, alleged unregistered offerings of crypto asset securities during Dragonchain's 2017 ICO.
Under former chair Gary Gensler, the SEC pursued enforcement actions against crypto firms, deeming most crypto assets as investment securities. With Gensler's departure and the creation of the Crypto Task Force in January, the SEC has shifted to a more accommodating stance. The task force is working to determine which cryptocurrencies should not be classified as securities.
The dismissal of the case is considered appropriate by the Commission. Following the news, Dragonchain (DRGN) surged nearly 100% in the past 24 hours. According to CoinMarketCap data, DRGN reached $0.0805 today.