SEC Slashes Crypto Enforcement by 60% in 2025 Under New Leadership: A Shift Toward Regulation and Fraud Focus
The U.S. Securities and Exchange Commission (SEC) dramatically reduced its cryptocurrency enforcement actions in 2025, initiating only 13 cases compared to 33 in 2024—a 60% decline marking the lowest level since 2017. This shift under new Chair Paul Atkins signals a pivot from aggressive “regulation by enforcement” to a more structured regulatory framework focused on fraud protection rather than broad crypto crackdowns.
Key Statistics Highlight Enforcement Downturn
According to the Cornerstone Research report SEC Cryptocurrency Enforcement: 2025 Update, of the 13 actions started in 2025, five occurred under former Chair Gary Gensler before his January departure. The remaining eight, all pursued under Atkins, targeted clear allegations of fraud. Monetary penalties plummeted to $142 million, less than 3% of 2024’s totals, while 29 actions were resolved, including seven dismissals by the SEC.
High-Profile Dismissals and Policy Resets
The Atkins administration dismissed or closed several high-profile cases from the Gensler era, including those against Coinbase, Binance, Gemini, Crypto.com, Robinhood, and Ondo Finance. These moves, often with prejudice for policy reasons, reflect a deliberate rollback of prior aggressive tactics. “All signs indicate that this rollback will continue,” noted a Harvard Law School Corporate Governance review, predicting increased state-level and private enforcement as a result.
Structural reforms accompanied these changes, such as enhancements to the Wells process—offering better access to investigative materials, a standard four-week response period, and senior-level meetings. This aims to make enforcement fairer and more efficient.
Birth of the Crypto Task Force
In January 2025, Acting Chairman Hester Peirce launched the SEC’s Crypto Task Force, dedicated to “developing a comprehensive and clear regulatory framework for crypto assets.” Led by Commissioner Peirce, known as “Crypto Mom” for her pro-innovation stance, the task force prioritizes drawing “clear regulatory lines” between securities and non-securities, tailored disclosures, realistic registration paths, and judicious enforcement resource allocation.
“The focus of the Task Force is to draw clear regulatory lines, appropriately distinguish securities from non-securities, create tailored disclosure frameworks, provide realistic paths to registration for both crypto assets and market intermediaries, and make sure that enforcement resources are deployed judiciously.”
— SEC Crypto Task Force Mandate
Rebranding and ‘Back to Basics’ Approach
The SEC rebranded its Crypto Assets and Cyber Unit as the Cyber and Emerging Technologies Unit (CETU), reducing staff from 50 to about 30 and refocusing on “combatting cyber-related misconduct and protecting retail investors from bad actors in emerging technologies.” Chairman Atkins’ “Project Crypto,” outlined in a November speech, emphasizes clear rules over enforcement-by-default.
Overall SEC enforcement trended toward “back-to-basics” priorities: insider trading, accounting fraud, Ponzi schemes, market manipulation, and fiduciary breaches. Novel theories like “shadow trading” and low-harm cases such as books-and-records violations are deprioritized. The Division of Examinations’ 2026 priorities, announced November 17, 2025, highlight information security, operational resiliency, emerging fintech, systems compliance, and anti-money laundering—omitting specific crypto mentions.
Industry Reactions and 2026 Outlook
“Enforcement actions under Chair Atkins reflect a shift in the SEC’s approach to digital-asset oversight, consistent with the priorities laid out in early 2025,” said Robert Letson, principal at Cornerstone Research and report co-author. The industry welcomes the clarity, with expectations of surging innovation as registration pathways emerge.
Recent developments include a January 22, 2026, joint SEC-CFTC event on harmonization and U.S. financial leadership in crypto. Analysts anticipate continued fraud pursuits harming retail investors, alongside state enforcers filling any federal gaps. “Digital asset regulation continues to evolve and is something we will be watching closely in 2026,” Letson added.
| Metric | 2024 | 2025 | Change |
|---|---|---|---|
| Actions Initiated | 33 | 13 | -60% |
| Monetary Penalties | ~ $4.7B (implied) | $142M | -97% |
| Actions Resolved | N/A | 29 (7 dismissed) | N/A |
Broader Implications for Crypto Markets
This transformation under the Trump administration aligns enforcement with investor protection over innovation stifling. Public companies face scrutiny on reporting and disclosures—three-quarters of 2025 actions against them alleged such violations. Cross-border fraud task forces and FCPA alignments further indicate a targeted, policy-driven strategy.
As 2026 unfolds, the crypto sector eyes the Task Force’s progress for lasting clarity. Dismissals like Coinbase’s pave the way for compliant growth, potentially positioning the U.S. as a global crypto hub amid evolving regulations.