The Securities and Exchange Commission has eased enforcement on over 60% of cryptocurrency cases since President Donald Trump returned to the White House.
A New York Times investigation published Sunday analyzed thousands of government documents and court records from recent presidential administrations.
The analysis found the SEC dismissed, paused, or reduced penalties in more than 60% of crypto cases that were active when Trump's second term began January 20.
The pullback rate for cryptocurrency cases far exceeded the 4% dismissal rate for non-crypto cases during the same period.
What Happened
The SEC outright dismissed seven cryptocurrency cases.
Five of those dismissed cases involved firms with known Trump ties.
The agency moved to freeze, propose favorable settlements, or concede in seven other cryptocurrency cases.
Three of those cases also involved defendants with Trump connections.
Nine cases without apparent Trump ties did not receive similar treatment.
The SEC has filed zero new cryptocurrency cases since Trump's inauguration, while continuing to file dozens of cases against other types of defendants.
During the Biden administration, the SEC brought an average of more than two crypto cases per month.
Trump's first term averaged about one crypto case monthly, including the high-profile action against Ripple Labs.
Cases involving Binance, Ripple, and a Winklevoss-backed firm saw enforcement actions dropped or softened after the administration change.
Paul S. Atkins, Trump's newly appointed SEC chairman, has called this shift a "new day" for the industry.
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Why It Matters
The enforcement retreat marks an unprecedented pullback for a single industry, according to the investigation.
Career SEC lawyers who brought some of these cases expressed alarm at the agency's reversal.
The pullback occurred as many defendants formed financial or political connections to Trump or his family's cryptocurrency businesses.
However, the Times reported it found no direct evidence firms influenced cases through donations or business ties made after the SEC changed course.
White House press secretary Karoline Leavitt said Trump's policies aim to "make the United States the crypto capital of the world by driving innovation and economic opportunity."
The SEC stated in a statement that political favoritism "had nothing to do with" its cryptocurrency enforcement decisions.
The agency said it was pivoting for legal and policy reasons, including concerns about its authority to police the industry.
Trump launched a Presidential Council of Advisers for Digital Assets in his first week and signed the GENIUS Act establishing regulatory clarity for stablecoins.
The administration's approach represents a sharp contrast to the Biden administration's aggressive cryptocurrency enforcement strategy.
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