The U.S. Securities and Exchange Commission (SEC) has shifted its regulatory stance significantly. In February 2025, the agency terminates several enforcement actions against prominent cryptocurrency entities. Today, Coinbase and Consensys secure formal dismissals, joining a roster of relieved firms. However, cases against Ripple Labs, Kraken, and others remain unresolved, presenting a complex landscape. This report examines these developments, offering comprehensive context and analysis for stakeholders.
This week, the SEC ended investigations into the following crypto companies
Monday: Robinhood
Tuesday: Uniswap
Wednesday: Gemini
Thursday: Consensys
Friday: ??? pic.twitter.com/0QI5gGi5dk— Watcher.Guru (@WatcherGuru) February 27, 2025
Formal Dismissals: A Series of Regulatory Retractions
The SEC announces substantial case dismissals in February 2025, reflecting a notable policy adjustment. Below, each resolved case receives detailed scrutiny to illuminate its background and resolution.
Coinbase: A Landmark Dismissal
On February 27, 2025, the SEC officially dropped its case against Coinbase, marking a major win for the largest U.S. cryptocurrency exchange. The case, originally filed in June 2023, alleged that Coinbase operated as an unregistered securities exchange and broker. The SEC also claimed that Coinbase’s staking program involved the sale of unregistered securities. The lawsuit had created significant uncertainty for the company and its users.
The SEC’s dismissal of the case came without fines or penalties, signaling a shift in the regulatory approach. Coinbase’s Chief Legal Officer, Paul Grewal, stated that the decision was a “long-overdue correction” and that the exchange remained committed to working with regulators for clear crypto guidelines. The case’s resolution has boosted investor confidence, with Coinbase’s stock price rising immediately after the announcement. Access the SEC’s official statement here.
Consensys: Ethereum Staking Case Abandoned
Also on February 27, 2025, the SEC agrees to terminate its lawsuit against Consensys Software Inc., subject to commission approval. Launched in April 2024 via a Wells notice, the SEC alleged Consensys operated as an unregistered broker through its MetaMask wallet and facilitated unregistered securities offerings via staking services tied to Ethereum 2.0. Consensys preemptively sued the SEC, arguing overreach into decentralized technology.
The agency’s June 2024 closure of an Ethereum 2.0 investigation hinted at softening, but today’s decision marks a full retreat. CEO Joseph Lubin praises the move, forecasting Ethereum’s strongest year ahead. The SEC links this dismissal to its task force’s mission, mirroring Coinbase’s resolution.
SCOOP: The @SECGov and @Consensys have reached an agreement in principle to end the agency’s lawsuit against the blockchain software company, according to people with direct knowledge of the matter. The dismissal is subject to approval by the commission and an announcement by…
— Eleanor Terrett (@EleanorTerrett) February 27, 2025
Uniswap: Decentralized Exchange Cleared
Uniswap Labs, the developer of the largest decentralized exchange (DEX) in the world, was also under SEC investigation. The regulator had issued a Wells Notice to Uniswap in early 2024, hinting at an enforcement action for allegedly operating an unregistered securities exchange.
However, on February 26, 2025, Uniswap Labs confirmed that the SEC had closed its investigation with no enforcement action. This development was seen as a landmark win for DeFi (decentralized finance), as it suggests that decentralized protocols may not be subject to the same regulations as traditional exchanges.
Uniswap CEO Hayden Adams celebrated the outcome, stating, “DeFi is here to stay, and this dismissal is proof that open, decentralized finance should not be regulated like centralized intermediaries.” The case’s closure provides regulatory relief for DeFi projects, though some experts caution that future regulations could still emerge.
Another huge win – @Uniswap Labs just won the Second Circuit appeal for our class action
“we agree… that it ‘defies logic’ that a drafter of a smart contract, a computer code, could be held liable under the Exchange Act for a third-party user’s misuse of the platform” https://t.co/d0Z7EMFeMp
— Hayden Adams (@haydenzadams) February 26, 2025
Robinhood Crypto: Investigation Terminated
The SEC had also launched an investigation into Robinhood’s crypto trading unit in May 2024, focusing on whether the platform’s listing of certain tokens violated securities laws. Robinhood had consistently argued that its listed cryptocurrencies did not qualify as securities and that it had worked to ensure compliance with evolving regulations.
On February 24, 2025, Robinhood announced that the SEC had concluded its investigation without taking enforcement action. This decision further underscores the changing regulatory landscape. Robinhood’s Chief Legal Officer Dan Gallagher expressed relief, stating, “This investigation never should have been opened, but we’re glad to move forward and focus on building.”
OpenSea: NFT Marketplace Freed
The SEC had been investigating OpenSea, the largest NFT marketplace, to determine whether certain NFT sales constituted unregistered securities offerings. The probe had raised concerns about how digital collectibles fit into existing securities laws.
On February 21, 2025, OpenSea confirmed that the SEC had closed its investigation. This decision reassured NFT creators and marketplaces that NFTs would not be classified as securities under current laws. While some experts believe that future regulatory clarity is still needed, the dismissal of the case signals a more hands-off approach to NFT enforcement.
Gemini: Lending Program Probe Ends
On February 26, 2025, the SEC terminates its 699-day investigation into Gemini Trust Company, LLC. Initiated in January 2023, the agency charged Gemini and Genesis Global Capital with offering unregistered securities through the Gemini Earn lending program, violating Sections 5(a) and 5(c) of the Securities Act of 1933. Withdrawals halted in November 2022 amid Genesis’s liquidity crisis, prompting the suit.
Co-founder Cameron Winklevoss announces the closure via X, decrying $50 million in legal costs and demanding SEC accountability. No enforcement action results, closing this chapter. Read his statement here.
On Monday, the SEC informed our litigation counsel @JackBaughman27 that it has closed its investigation into @Gemini and will not be pursuing an enforcement action against us. This comes 699 days after the start of their investigation and 277 days after they sent us a Wells… pic.twitter.com/dTjg9CJXVl
— Cameron Winklevoss (@cameron) February 26, 2025
Why Is the SEC Dropping Cases?
The dismissals align with the new administration’s shift toward crypto-friendly policies. Acting SEC Chair Mark Uyeda has advocated for clear regulations instead of enforcement-driven policymaking. The creation of a new Crypto Task Force, announced in January 2025, suggests that regulators now prefer to establish clear industry guidelines rather than fight lengthy legal battles.
SEC Commissioner Hester Peirce, a vocal advocate for crypto regulation reform, noted that these dismissals reflect a move toward greater transparency and legal clarity. However, critics argue that this shift weakens investor protections and allows companies to operate without sufficient oversight.
Major Crypto Lawsuits Still Ongoing
While some companies secured relief, several high-profile SEC lawsuits remain active:
- Ripple Labs – The SEC’s legal battle against Ripple over the classification of XRP continues. Although a 2023 ruling determined that XRP is not a security in secondary sales, the SEC is still pursuing penalties for institutional sales.
- Terraform Labs & Do Kwon – The SEC is pursuing Terraform Labs and its founder Do Kwon for fraud related to the collapse of Terra (LUNA). This case remains one of the biggest crypto fraud lawsuits in history.
- Binance – The SEC sued Binance and its founder Changpeng Zhao (CZ) in June 2023 for allegedly operating an unregistered securities exchange. While the case is currently on hold, a final resolution remains uncertain.
- Kraken – The SEC’s lawsuit against Kraken for allegedly operating as an unregistered exchange is ongoing. The court recently denied Kraken’s motion to dismiss, allowing the case to proceed.
What This Means for the Crypto Industry
The SEC’s retreat from some enforcement actions suggests a friendlier stance toward crypto innovation. Companies like Coinbase and Uniswap can now focus on growth without legal overhangs. Investor confidence is also rising, as seen in Coinbase’s stock price jump following news of the case dismissal.
However, the industry is still in regulatory limbo. While some companies benefit from reduced enforcement, others remain locked in costly legal battles. The SEC’s next steps—including potential new crypto regulations—will determine whether this shift is temporary or a long-term policy change.
A Shifting Regulatory Horizon
The SEC’s decision to drop lawsuits against Coinbase, Uniswap, Robinhood, and other crypto firms reflects a major policy shift. The regulator appears to be stepping away from aggressive enforcement and moving toward rule-based guidance. However, the legal fight is far from over. Binance, Ripple, and other firms still face significant legal challenges.
For now, the crypto industry is watching closely to see whether this regulatory reset leads to real clarity—or just temporary relief.
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