For years, the U.S. Securities and Exchange Commission (SEC) engaged in legal battles with some of the most prominent names in crypto, including exchanges like Coinbase and Uniswap, blockchain firms such as ConsenSys and Gemini, and NFT marketplaces like Opensea.
Under Gary Gensler, the SEC’s enforcement-focused approach sparked controversy. Critics accused the agency of stifling innovation by regulating through lawsuits rather than establishing clear guidelines, thereby pushing innovation out of the U.S.
Following Trump’s inauguration as the 47th U.S. president, a significant shift occurred. The SEC, under new leadership, has abandoned several enforcement actions in favor of a more cooperative approach to crypto oversight.
Here is a list of crypto firms with cases either dropped or temporarily suspended:
Gemini
The conflict between Gemini and the U.S. Securities and Exchange Commission (SEC) centers on Gemini’s Earn program. In January 2023, the SEC sued Gemini and its partner, Genesis Global Capital, alleging that the Earn program was an unregistered securities offering.
Gemini had teamed up with Genesis to provide customers with high-yield returns on their crypto deposits. The SEC contended that this constituted an unregistered securities offering, making it illegal under U.S. law. The situation escalated when Genesis halted withdrawals in November 2022 and subsequently filed for bankruptcy, leaving many Gemini Earn users unable to access their funds.
Gemini denied any wrongdoing and contested the SEC’s claims. Legal proceedings and discussions about settlements followed, with Gemini asserting that the program was properly structured, while the SEC maintained it violated securities laws.
On February 24, 2025, Cameron, the co-founder of Gemini, announced that the SEC had decided to drop all cases against the crypto firm. “This comes 699 days after the start of their investigation and 277 days after they sent us a Wells Notice,” he wrote on his X account.
He also called for reimbursement from the SEC due to its false allegations, which caused significant damage to the company and the industry. He noted that several developers had left the company, unwilling to become entangled in the case.
While Gemini’s co-founder Tyler Winklevoss had previously stated they wouldn’t hire any graduates from MIT as long as former SEC boss Gary Gensler was (working) there, Cameron has added that “there should be a process that bars those like Gary Gensler who weaponize the law, as well those who participate in the weaponization, from ever being appointed to or hired by an agency again.”
Justin Sun, Tron and Bitforrex
In March 2023, the SEC filed a lawsuit against Justin Sun and his companies—Tron Foundation, BitTorrent Foundation, and Rainberry—accusing them of illegally offering unregistered securities, manipulating trading volumes, and secretly paying celebrities to promote TRX and BTT tokens. The SEC claimed that Sun’s companies engaged in wash trading, creating a misleading impression of market activity to deceive investors.
Justin Sun is the founder of Tron (TRX) and the former CEO of BitTorrent. BitTorrent, a P2P file-sharing protocol created in 2001, was acquired by TRON in 2018, which then launched the BTT token. Tron (TRX) is a blockchain platform for decentralized apps and digital content, known for its fast, low-cost transactions.
Sun has vigorously contested the charges. His defense argued that the SEC lacked jurisdiction over foreign digital asset sales. In August 2024, a judge ruled in Sun’s favor by rejecting an SEC motion to introduce new arguments in the case. This decision was seen as a legal victory for Sun, as the court denied the SEC’s request for a pre-trial conference.
More recently, Sun and the SEC have jointly requested to pause the case while exploring a “potential resolution.” The parties believe this would serve their best interests and conserve judicial resources. This move follows a pattern seen in the SEC’s cases against other crypto firms like Coinbase and Binance.
Consensys
ConsenSys, founded by Joseph Lubin in 2014, is a leading blockchain software company focused on Ethereum and Web3 development. It has incubated key projects like MetaMask, Infura, and Truffle and is a major player in the Enterprise Ethereum Alliance. ConsenSys aims to drive decentralized innovation globally.
The legal battle between the SEC and ConsenSys began when the SEC sued ConsenSys in June 2024, alleging that MetaMask, a popular crypto wallet tool developed by ConsenSys, acted as an unregistered securities broker.
ConsenSys had previously challenged the SEC over its plans to regulate Ethereum as a security, which led to the SEC dropping its Ethereum investigation. Recently, the SEC agreed to drop its lawsuit against ConsenSys, subject to final approval.
Joseph Lubin, founder of ConsenSys, expressed gratitude to Matt Corva and the legal team for their outstanding work in managing the SEC lawsuit. He also acknowledged the dedication of the entire ConsenSys team, whose commitment remained unwavering throughout the legal battle.
Lubin appreciated the SEC’s new leadership for adopting a pro-innovation and pro-investor approach, aligning with ConsenSys’s goals.
He emphasized that ConsenSys will continue to engage with policymakers to foster a supportive environment for blockchain and cryptocurrency development. “Now we can get 100% back to building. 2025 is going to be the best year yet for Ethereum and Consensys” he stated.
Opensea
OpenSea is a leading NFT marketplace where users can buy, sell, and trade digital assets, including art, music, and collectibles. Founded in 2017, it operates on multiple blockchains like Ethereum and Polygon.
OpenSea earns revenue through transaction fees and has faced challenges such as security issues and regulatory scrutiny, including a now-dropped SEC investigation.
The case between OpenSea and the SEC centered on whether OpenSea was functioning as an unregistered securities marketplace. In August 2024, the SEC launched an investigation, issuing a Wells notice that suggested OpenSea had facilitated the trading of digital assets potentially classified as securities.
If NFTs were deemed securities, it could have significantly impacted the industry and stifled innovation.
On February 21, 2025, the SEC dropped its investigation, marking a significant win for OpenSea and the broader NFT market. This decision followed shortly after the SEC dismissed its lawsuit against Coinbase. OpenSea’s founder, Devin Finzer, hailed the outcome as a victory for creators and builders in the industry.
Uniswap
Uniswap, one of the largest decentralized exchanges, faced scrutiny from the SEC over whether its token, UNI, should be classified as a security. In May 2024, Uniswap received a Wells Notice from the SEC, formally indicating that enforcement action might follow.
The SEC investigated whether Uniswap’s activities, including its liquidity pools and token offerings, violated U.S. securities laws. The focus was on whether Uniswap allowed the trade of unregistered securities.
Following this notice, UNI experienced a significant price drop as the crypto community reacted to the potential legal threat. However, under the new U.S. administration in 2025, the SEC officially dropped its investigation into Uniswap Labs and will not take any enforcement action against the company. Uniswap celebrated the outcome, calling it a victory for DeFi.
Coinbase
Coinbase’s legal battle with the SEC was one of the most significant crypto lawsuits in recent years. The SEC sued Coinbase in June 2023, alleging that the company operated as an unregistered securities exchange, broker, and clearing agency.
The Commission claimed that Coinbase was facilitating the trading of multiple crypto tokens that the SEC classified as securities, which meant the exchange should have registered with the agency.
Coinbase pushed back, arguing that the SEC had failed to provide clear regulations for crypto firms and that the tokens listed on its platform were not securities. The case dragged on for over a year, costing millions in legal fees.
Following the reshuffling of the Securities and Exchange Commission in February 2025, Coinbase CEO Brian Armstrong announced that the SEC had agreed to drop the lawsuit entirely. According to Armstrong, Coinbase did not have to pay any fines or make changes to its business model.
Robinhood
Robinhood was also under SEC investigation for its crypto operations. The SEC issued a Wells Notice to Robinhood in May 2024, warning that it was considering enforcement action against the company’s crypto business. The SEC was reportedly investigating whether Robinhood had allowed trading of assets that should have been classified as securities.
After nearly nine months of investigation, the SEC officially closed the case against Robinhood in February 2025 without recommending any enforcement action. Robinhood’s Chief Legal Officer, Dan Gallagher, criticized the SEC’s initial decision to investigate, arguing that Robinhood had always complied with securities laws.
The company expressed relief that the case was dropped and called for a more transparent regulatory framework for digital assets.
These cases highlight the changing stance of the SEC toward crypto regulation. Under the previous administration, the SEC took a strict enforcement approach, targeting major crypto firms with lawsuits and investigations.
In 2025, the new administration signaled a willingness to work with the crypto industry rather than against it by dropping enforcement actions and shifting toward clearer rules.
