It doesn’t happen often, but sometimes even the U.S. Securities and Exchange Commission takes a step back and says, “Let’s ease up a bit.” That’s exactly what seems to have happened with crypto after Donald Trump returned to the White House, according to a new investigation by The New York Times.
The report says that more than 60% of active crypto cases were either paused, reduced, or dropped altogether after Trump’s re-election. For an agency known for coming down hard on the crypto industry, that’s a big shift.
One of the clearest examples is Binance, the world’s largest crypto exchange. The SEC had sued the company, but once Trump’s second term began, the case was suddenly dropped. Another surprise came in the long-running case against Ripple, where the SEC tried to lower a court-ordered fine, leaving many people scratching their heads.
As more cases were rolled back, a pattern started to stand out. Many of the companies getting relief had some kind of connection to Trump—either through political donations, business ties, or public support. Some of the most vocal figures in crypto had donated to Trump’s campaigns or done deals linked to his family.
The SEC insists politics had nothing to do with it. Officials say the changes came from a new legal strategy and a shift away from what they now call “overreach” by the previous administration.
Critics aren’t convinced. They point to high-profile cases like Gemini, run by the Winklevoss twins, longtime Trump supporters. The twins donated to Trump’s fundraising efforts, helped fund a White House ballroom, and even invested in ventures tied to Trump’s sons, Eric and Donald Jr. When their case was eased, many people raised eyebrows.
The softer approach has given the crypto industry some breathing room. Companies that once faced serious legal threats are now seeing the pressure ease. Even Coinbase, the largest U.S.-based crypto exchange, scored a major win when the SEC dropped its case after years of fighting back.
Still, not everyone in crypto is celebrating. Some believe Trump’s actions have actually hurt the industry’s image. SkyBridge founder Anthony Scaramucci has been especially critical, pointing to Trump’s launch of meme coins tied to himself and Melania. According to Scaramucci, these tokens made hundreds of millions of dollars early on, only to crash later, leaving many investors burned.
He argues that a sitting president promoting personal meme coins creates serious trust issues and opens the door to influence-buying, which could damage the industry in the long run.
Despite those concerns, the reality is clear: crypto now has a president who appears friendlier than ever—and possibly willing to help behind the scenes.
At the same time, the SEC hasn’t completely stepped away from shaping the future. The agency has started reviewing Nasdaq’s proposal to list tokenized stocks and exchange-traded products on the same system as traditional shares. The idea is to keep shareholder rights intact while using blockchain to improve efficiency.
The SEC is now asking the public for feedback. Some firms support the move, while others say the agency should wait for clearer rules from settlement bodies like the DTCC before moving forward.
Separately, the SEC also released guidance on crypto wallets, explaining the difference between hot wallets connected to the internet and cold wallets stored offline. The agency reminded investors that they must decide whether to manage their own wallets or trust third-party custodians.
Taken together, it all paints a picture of a regulator pulling back with one hand while cautiously moving forward with the other—right as crypto finds itself closer than ever to political power.
