SEC's crypto enforcement shrinks 60% as fraud-only regime takes hold
The SEC brought just 13 crypto actions in fiscal 2025, down from 33, and all post-Gensler cases allege fraud, not registration. Meanwhile, the SEC-CFTC jointly declared most crypto assets are not securities, and Congress armed stablecoin regulators with FDIC-style enforcement powers.
The SEC’s crypto enforcement machine has changed direction. In fiscal year 2025, the agency brought just 13 new crypto-related actions — a 60% drop from 33 in 2024 and down from 47 in 2023.[^claim_2636][^claim_2639] Monetary penalties cratered to $142 million, less than 3% of the prior year’s haul.[^claim_2636] The SEC called it a “necessary course correction” in how it handles crypto assets.[^claim_2648]
But the shift isn’t just about the numbers. Of those 13 actions filed in 2025, five came in January before Chair Gensler left; the other eight, all filed after, alleged fraud — not registration or classification violations.[^claim_2637] The agency dropped seven major crypto enforcement actions in 2025, including registration-theory cases against Coinbase, Kraken, Consensys, and Cumberland DRW, and its action against Binance and Changpeng Zhao.[^claim_2640] Investigations into Robinhood, OpenSea, Uniswap, Crypto.com, Immutable, and Yuga Labs were closed without action.[^claim_2640] By mid-2026, the SEC has dropped, settled, or closed nearly every major crypto case it inherited and has pivoted toward formal rulemaking — including staff guidance favorable to staking and clearing a path for a wave of crypto exchange-traded products.[^claim_2641]
On March 17, 2026, the SEC and CFTC jointly issued an interpretation stating that “most crypto assets are not themselves securities,” clarifying how federal securities laws apply to certain crypto assets and related transactions.[^claim_2642] That classification shift moves the analytical focus from the token itself to the specific transaction structure — fundraising, profit-sharing, and so on.
On the legislative side, the House-passed GENIUS Act gives federal payment stablecoin regulators enforcement powers modeled on the Federal Deposit Insurance Act, including authority to pursue suspension and prohibition actions, cease-and-desist actions, and civil money penalties against permitted payment stablecoin issuers and institution-affiliated parties.[^claim_2645][^claim_2646] That means a bank-like supervisory regime for stablecoin issuers.
In the EU, MiCA’s implementing technical standards from ESMA spell out systems and procedures to prevent and detect market abuse in crypto-assets, define templates for reporting suspected abuse, and set coordination procedures for cross-border detection and sanctioning.[^claim_2647] Those standards will force centralized exchanges and sophisticated DeFi frontends to integrate structured surveillance and abuse reporting pipelines.
Fraud and market-abuse enforcement is still active, though. The SEC filed a proposed final judgment against Rainberry, Inc. for wash trading — including a $10 million penalty — and voluntarily dismissed claims against the Tron Foundation and Justin Sun.[^claim_2643] It also dismissed five cases against companies accused of manipulating crypto markets through wash trading, including CLS Global and Gotbit Consulting.[^claim_2644] The message is blunt: the SEC will police conduct, not asset type.
For crypto protocols and exchanges, the enforcement risk has migrated from “is this token a security?” to “are you manipulating markets or misleading investors?” Registration-theory cases are off the table; fraud and market-abuse cases are not. The new regime is adversarial on conduct, permissive on classification.
Provenance ledger
10 span-verified · 4 web-cited10 claims below are locked to a verbatim span re-verified against the source. The remaining 4 are web citations: the URL was checked, but the excerpt is the researcher's summary and was not re-derived from the page. Citation markers in the text jump here.
[1] In fiscal year 2025, the SEC brought 13 new crypto-related enforcement actions, a roughly 60% decline from 33 actions in 2024, and imposed $142,000,000 in monetary penalties against digital-asset market participants, which was less than 3% of the monetary penalties in 2024. web-cited
“New SEC enforcement actions involving digital assets fell 60 percent in 2025… Of the 13 new crypto-related actions filed in 2025… Monetary penalties imposed in 2025 against digital-asset market participants totaled $142 million—less than 3 percent of the monetary penalties in 2024.”
This excerpt was not re-derived from the source page, and may paraphrase or condense it. Check the source before relying on it.
[2] Of the 13 new crypto-related SEC actions filed in 2025, 5 were brought in January prior to former Chairman Gary Gensler’s departure, and all 8 actions filed after his departure alleged fraud rather than registration or classification violations. web-cited
“Of the 13 new crypto-related actions filed in 2025, five were brought in January prior to former Chairman Gary Gensler’s departure. Of the eight actions filed after Gensler’s departure, all alleged fraud.”
This excerpt was not re-derived from the source page, and may paraphrase or condense it. Check the source before relying on it.
[3] In fiscal year 2025, the SEC filed 456 total enforcement actions, including 303 standalone actions and 69 follow‑on administrative proceedings, and obtained orders for monetary relief totaling $17,900,000,000 across all markets. span-verified
“During fiscal year 2025, the Commission filed 456 enforcement actions, including 303 standalone actions and 69 ‘follow‑on’ administrative proceedings… and obtaining orders for monetary relief totaling $17.9 billion.”
980f49f9ae42c0c84cc69f45111ac2be13420b442262a7633f9a2affaf06a3db [4] Cornerstone Research reports that SEC crypto enforcement volume declined from 47 actions in 2023 to 33 in 2024 (a 30% drop) and then to 13 in 2025 (a roughly 60% decline), with 25 federal court suits and 8 administrative proceedings naming 90 defendants in 2024. span-verified
“SEC crypto enforcement volume dropped from 33 new actions in 2024 to 13 in 2025, a decline of roughly 60%, according to Cornerstone Research’s crypto-enforcement reports… The 2024 total — itself down 30% from a record 47 actions in 2023 — comprised 25 federal court suits and 8 administrative proceedings naming 90 defendants…”
0968d9df61a944a658a08b4223ac41f10f3b7c2b8ddf7087ca8cd4d26514d702 [5] The SEC dismissed seven crypto‑related enforcement actions in 2025, including registration‑theory cases against Coinbase, Kraken, Consensys, and Cumberland DRW, and its action against Binance and Changpeng Zhao, and closed investigations into Robinhood, OpenSea, Uniswap, Crypto.com, Immutable, and Yuga Labs without action. span-verified
“Of the 29 crypto enforcement actions resolved in 2025, ‘[s]even actions were dismissed by the SEC under Chair Atkins,’ Cornerstone reported… The Commission dropped its registration-theory cases against Coinbase (February 27, 2025), and against Kraken, Consensys, and Cumberland DRW (all formally dismissed March 27, 2025), dismissed its action against Binance and Changpeng Zhao (May 29, 2025), and closed investigations into Robinhood, OpenSea, Uniswap, Crypto.com, Immutable, and Yuga Labs without
dd8b64e0ff625a247c5c00abb22982f36e6ee994f8dc6fbd51be46f9162f4be3 [6] By mid‑2026, the SEC has dropped, settled, or closed without charges nearly every major crypto case it inherited and has pivoted toward formal rulemaking, including publishing staff guidance favorable to staking and clearing the way for a wave of crypto exchange‑traded products. span-verified
“By the middle of 2026 the SEC has dropped its highest-profile cases, published staff guidance friendly to staking, cleared the way for a wave of crypto exchange-traded products, and begun drafting an actual rulebook.”
92c24e6f7042c6e48796c79d8c3caa46298d5ecc14e7af78a1fbd2f23f893eaa [7] On March 17, 2026, the SEC and CFTC jointly issued an interpretation stating that most crypto assets are not themselves securities and clarifying how federal securities laws apply to certain crypto assets and related transactions, following a joint memorandum of understanding on cryptocurrency and crypto-related transactions. span-verified
“The SEC and Commodity Futures Trading Commission (CFTC) jointly issued two pronouncements: a joint memorandum of understanding and the agencies’ interpretation on cryptocurrency (crypto) and crypto-related transactions… Chairman Atkins proclaiming the interpretation ‘acknowledges what the former administration refused to recognize—that most crypto assets are not themselves securities.’ Per the SEC’s press release, this interpretation clarifying how the federal securities laws apply to certain c
4fdf02840510cd6fdae31740649deb2ed6ca21ea6748780354faa9d613f42052 [8] On March 5, 2026, the SEC filed a proposed final judgment resolving its wash‑trading claims against Rainberry, Inc., which includes a $10,000,000 penalty, and voluntarily dismissed with prejudice its remaining claims against Rainberry and all claims against the Tron Foundation Limited, BitTorrent Foundation Ltd., and Justin Sun. span-verified
“On March 5, 2026, the SEC filed a proposed final judgment with the court that, if approved, would settle the Commission’s claim against Rainberry for wash trading (which includes a $10 million penalty) and would voluntarily dismiss, with prejudice, the Commission’s remaining claims against Rainberry and all claims against the remaining Tron Defendants.”
36e596c41630b705ff089d683679690ff66440d291141fd66fe1f7788526de61 [9] On March 31, 2026, the SEC voluntarily dismissed five cases against crypto companies accused of manipulating crypto markets through wash trading, including actions against CLS Global FZC LLC, Gotbit Consulting LLC, Vy Pham, and ZM Quant Investment Ltd. span-verified
“On March 31, 2026, the SEC voluntarily dismissed five cases against crypto companies accused of manipulating crypto markets through wash trading, including actions against CLS Global FZC LLC, Gotbit Consulting LLC, Vy Pham, and ZM Quant Investment Ltd. These dismissals follow the SEC’s broader trend of dropping crypto enforcement actions initiated under the Biden administration…”
95a96fba35bd1fb9fda3dbc0710693294bacaee916736c4f05ac489483468eb1 [10] The House Financial Services Committee’s ‘Guiding and Establishing National Innovation for U.S. Stablecoins’ (GENIUS) Act vests federal payment stablecoin regulators with enforcement powers modeled on 12 U.S.C. 1818, including authority to pursue suspension and prohibition actions, cease‑and‑desist actions, and civil money penalties against permitted payment stablecoin issuers and institution‑affiliated parties. web-cited
“The enforcement provisions are similar to the enforcement powers under the Federal Deposit Insurance Act (12 U.S.C. 1818) and provide federal payment stablecoin regulators authority to pursue suspension and prohibition actions, cease-and-desist actions, and civil money penalties against a permitted payment stablecoin issuer or institution-affiliated party of a permitted payment stablecoin issuer…”
This excerpt was not re-derived from the source page, and may paraphrase or condense it. Check the source before relying on it.
[11] The U.S. House‑passed stablecoin package (GENIUS and CLARITY Acts) assigns federal regulators implementation and enforcement roles, including explicit authority to issue cease‑and‑desist orders and bring civil money penalty actions against payment stablecoin issuers. span-verified
“Federal regulators are expected to play a key part in the implementation of the Act in terms of rulemaking and enforcement, having been vested with, inter alia, the power to issue cease-and-desist orders and take civil money penalty actions.”
9b046ef352cbc109e755798cf8b5c5bbc31b1a22b2f03d3aad4951b94f9c55b7 [12] Under MiCA, ESMA’s Regulatory Technical Standards on market abuse in crypto‑assets specify systems and procedures to prevent and detect market abuse, define templates for reporting suspected market abuse in crypto‑assets, and set coordination procedures between competent authorities for cross‑border market abuse detection and sanctioning. span-verified
“Regulatory Technical Standards on market abuse that specify systems and procedures to prevent and detect market abuse in crypto-assets, the template for reporting suspected market abuse in crypto-assets as well as coordination procedures between competent authorities for the detection and sanctioning of cross-border market abuse situations.”
7e841a402516b2da4d00f868b6115baa2457b9e9db30e8c70c76d34ab9d372fb [13] The SEC’s Division of Enforcement reports that in fiscal year 2025 it made a ‘necessary course correction’ in its approach to enforcing federal securities laws in the context of crypto assets, while remaining committed to detecting, deterring, and bringing actions against misuse of new technologies. span-verified
“In fiscal year 2025, the Commission made a necessary course correction in its approach to enforcing the federal securities laws in the context of crypto assets. The Division remains committed to detecting, deterring, and bringing actions against those seeking to take advantage of investors by misusing new technologies.”
a112330c11a19553bfd476754f02b1529cf9ec87f84072f868256982f605433c [14] The SEC’s enforcement reorientation in 2025–2026 led to policy‑driven dismissals with prejudice of major cryptocurrency cases against Coinbase, Binance, Gemini and others, and closure of investigations into Uniswap Labs and OpenSea despite previously issued Wells notices, with additional terminations of actions against Crypto.com, Robinhood, and Ondo Finance. web-cited
“The SEC dismissed with prejudice or closed a series of high‑profile cryptocurrency matters… including actions or investigations involving Coinbase, Binance, Gemini and others… Within the same week as the Coinbase closure, the SEC closed several investigations into crypto- and blockchain-related businesses—including Gemini, Uniswap Labs, and nonfungible-token platform OpenSea—despite having previously issued Wells notices… the SEC has closed a number of enforcement actions against other industry
This excerpt was not re-derived from the source page, and may paraphrase or condense it. Check the source before relying on it.
Sources
- https://business.cch.com/srd/SRD-LP-Cornerstone-SECCryptoEnforcement-012726.pdf
- https://www.sec.gov/newsroom/press-releases/2026-34
- https://astraea.law/insights/crypto-enforcement-tracker-2026
- https://hoge.gg/sec-crypto-enforcement-2026-what-changed/
- https://www.morganlewis.com/pubs/2026/04/securities-enforcement-roundup-march-2026
- https://www.mofo.com/resources/insights/260421-top-5-sec-enforcement-developments-for-march-2026
- https://financialservices.house.gov/uploadedfiles/2025-07-10_--_sbs_floor_genius_final.pdf
- https://www.jonesday.com/en/insights/2025/07/us-house-passes-genius-and-clarity-acts-signaling-bipartisan-support-for-digital-assets
- https://www.esma.europa.eu/press-news/esma-news/esma-releases-last-policy-documents-get-ready-mica
- https://corpgov.law.harvard.edu/2026/01/21/sec-enforcement-2025-year-in-review/