The U.S. Securities and Exchange Commission (SEC) has suddenly abandoned a dozen high-profile cases against crypto companies — Coinbase, Kraken, Ripple and others. Commissioner Mark Uyeda stated plainly: continuing the litigation would mean undermining its own reputation in court, since the agency is preparing a 180-degree policy reversal.
This is not merely a change of course. Under the previous leadership of Gary Gensler, the regulator preferred "regulation through enforcement": instead of clear rules — lawsuits, instead of clarity — pressure on exchanges and projects. Now, under the new chairman Paul Atkins, the priority is shifting toward formal rulemaking. Regulation Crypto Assets has already been proposed, and most inherited cases have been closed with prejudice — they cannot be reopened.
For investors this is both a relief and a new risk. Previously the market lived in constant fear of sudden lawsuits, which scared off institutions and slowed development. Now the pressure has eased, but protection from fraud has also become more selective: the focus is on clear harm rather than formal registration violations. The volume of enforcement actions has fallen by more than 20 %.
The hidden motive is obvious. Courts had begun to call into question the legal basis of the old claims. To continue them would mean, for the SEC, publicly contradicting itself — and losing weight in the eyes of judges. Uyeda put it directly: "This will damage the agency's credibility."
The analogy is simple: the regulator, like a poker player, has folded its weak cards in order to preserve its bankroll for a future deal. But now the rules of the game will have to be written anew, and the outcome depends on how quickly and transparently this happens.
For the ordinary holder of crypto assets the lesson is clear: rely less on "the regulator's protection" and more on your own assessment of risks and diversification. Clear rules matter more than loud lawsuits, but even they will not replace personal prudence.
