- The SEC has formally dismissed its lawsuit against Dragonchain after agreeing to drop all ongoing litigation related to its 2017 ICO.
- The agency’s internal Crypto Task Force is taking the lead in facilitating regulatory clarity through direct engagement with the crypto industry.
- SEC Chair Paul Atkins is expected to outline the agency’s new crypto oversight approach during today’s roundtable meeting in Washington, D.C.
The U.S. Securities and Exchange Commission has officially ended its lawsuit against blockchain company Dragonchain. The regulator and the company jointly filed for dismissal of the case, which stemmed from allegations surrounding an unregistered securities offering during
In 2022, the SEC began an investigation of Dragonchain for collecting millions through DRGN token sales that the SEC declared to be securities. The court determined the status of DRGN tokens by applying the Howey Test, which establishes rules for identifying investment contracts.
Broader Enforcement Strategy Under Review
The dismissal stands as one of many adjustments that current leadership has made to SEC enforcement strategies. The agency made the decision to stop multiple lawsuits, together with investigations involving major crypto companies. Several pending legal actions are underway because the SEC is taking action against Coinbase as well as Binance alongside other cryptocurrency platforms.
The new Crypto Task Force established at SEC has started to hold discussions with different representatives from the industry. This stakeholder consortium initiated its operation during early 2022 but has diverted its attention from courtroom battles to start meaningful dialogues. The agency is running multiple roundtable meetings to define the position of digital assets regarding current securities regulations.
SEC Chair to Address Industry Leaders
SEC Chair Paul Atkins is scheduled to speak at a crypto industry roundtable today. The event will take place from 1:00 to 5:00 p.m. Eastern Time. This marks the third such meeting since the agency began its industry consultations. It is also the first roundtable under Atkins’ leadership since his nomination in December.
The SEC’s decision to end its case against Dragonchain follows a similar development involving Ripple. That case was also dismissed in recent weeks, indicating a consistent change in the agency’s enforcement direction.
The SEC’s latest actions reflect a notable shift away from regulation by enforcement. The new strategy emphasizes communication, industry engagement, and structured guidance. This transition is expected to continue as the Crypto Task Force expands its reach.
