Inquiry Continues by Journalists on SEC's Ongoing Examination of Numerous Cryptocurrency Companies
Fresh Take:
The Securities and Exchange Commission (SEC) is currently entangled in several ongoing lawsuits and investigations against various cryptocurrency companies. As of now, academic partner Vinson & Elkins expects the SEC to drop its appeals in some cases, while maintaining an interest in fraud-related matters. Here's the lowdown on the crypto firms under SEC scrutiny.
Standoffs:
Cumberland DRW is being accused of operating as an unregistered securities dealer. Ripple, despite the case being open, could see the SEC dropping their appeal, according to industry insiders. Legal expert Rebecca Fike suggests that based on the Howey Test, the SEC might drop all cases involving crypto companies. However, she notes that fraud-related matters may still persist. In 2023, the SEC charged Richard Hart, Pulsechain, PulseX, and Hex, and a judge as late as February 2025 rejected the defendants' motion to dismiss. But the SEC was given 20 days to amend its complaint.
Investigations:
The SEC is still probing Crypto.com, Immutable, and Unicoin. No formal charges have been filed against these companies yet. In 2024, Crypto.com sued the SEC after receiving a Wells notice but later dropped the lawsuit in February 2025. This move was reportedly made shortly after CEO Kris Marszalek met with former President Donald Trump.
Trends and Perspectives:
As the SEC works towards developing a more defined regulatory framework, regulatory clarity seems to be the new priority over aggressive enforcement. The SEC's Crypto Task Force, led by Commissioner Hester Peirce, is actively engaged in public and industry collaborations to create clearer policies. This shift towards regulatory certainty is expected to bring greater predictability for crypto firms and potentially boost innovation in the sector.
Stay tuned for further updates as the SEC's journey through the cryptocurrency landscape continues to evolve.
- In light of the SEC's potential shift towards regulatory certainty, the defi industry, including businesses like Cumberland DRW, Ripple, Crypto.com, Immutable, and Unicoin, might find investing in this space more appealing as technology plays a crucial role in fostering innovation and ensuring compliance within the ever-evolving finance sector.
- As the SEC continues to engage in lawsuits and investigations against various cryptocurrency companies, the outcome of these cases, such as the ongoing lawsuit against Richard Hart, Pulsechain, PulseX, and Hex, could significantly influence the future of financing and investments in the business sector, particularly in relation to defi and technology-driven crypto firms.
