Dramatic 60% Drop in SEC Crypto Enforcement During Paul Atkins’ First Year
A New Era for Crypto Regulation?
In a big shift for the crypto world, the U.S. Securities and Exchange Commission (SEC) started far fewer enforcement actions against cryptocurrency projects in 2025. This marks the first year under new Chair Paul Atkins. The number fell to just 13 actions, down 60% from 33 in 2024. It’s the lowest level since 2017.
This change shows a softer approach to digital assets. It matches the new priorities set early in 2025. For crypto fans and businesses, this could mean less fear and more room to grow.
Understanding the Shift
The SEC has long been tough on crypto. Under past leaders like Gary Gensler, the agency filed many lawsuits. They called tokens “securities” and cracked down on exchanges, projects, and influencers. This created uncertainty. Many firms spent millions fighting cases or moved overseas.
But 2025 brought change. Paul Atkins took over as Chair. He has a history of supporting innovation. Before the SEC, he worked in finance and pushed for clear rules. His team promised to focus on real fraud, not every new token.
The Hard Numbers Behind the Decline
According to recent analysis, the SEC initiated only 13 crypto-related actions in 2025. That’s a sharp <60% drop> from the year before. Here’s a quick look at recent years:
- 2024: 33 actions
- 2023: Around 46 (peak under Gensler)
- 2022: 28 actions
- 2021: 20 actions
- 2017: Lowest before 2025 at about 12
Not just fewer cases, but the types changed too. Fewer broad attacks on platforms like Coinbase or Binance. More focus on clear scams, like rug pulls or fake ICOs.
Who is Paul Atkins and Why the Change?
Paul Atkins is no stranger to markets. He served on the SEC from 2002 to 2008. Back then, he voted against some strict rules. Now, as Chair, he leads a commission with more pro-crypto views. Key moves include:
- Pausing old cases for review.
- Working on clear guidelines for tokens.
- Team-ups with the CFTC for better split of duties.
Early 2025 speeches set the tone. Atkins said the SEC would target bad actors, not builders. This matches promises from the new administration to ease regs on tech and finance.
What Do the 13 Actions Look Like?
Though fewer, the cases still pack a punch. Examples from 2025:
- Suits against pump-and-dump schemes on social media.
- Actions on unregistered exchanges hiding trades.
- Crackdowns on celeb endorsements without disclosures.
No massive cases against majors like Ripple or Kraken this year. That alone eases pressure on the industry.
Impact on the Crypto Industry
This
- Less Legal Fear: Startups can launch without SEC lawsuits looming.
- More Investment: VCs feel safer putting money into DeFi and NFTs.
- Price Boost: Bitcoin and Ethereum rallied in late 2025, partly on reg relief.
- U.S. Stays Competitive: Firms won’t flee to Dubai or Singapore as much.
Markets reacted fast. Total crypto market cap grew 40% in 2025, hitting new highs.
Expert Views on the Future
Analysts say this is just the start. One expert noted, “Enforcement under Chair Atkins shows a new path for digital assets. It fits 2025 priorities.” They predict steady evolution in rules.
But challenges remain. Congress may pass laws like FIT21. States like Wyoming lead with friendly regs. The SEC must balance protection and growth.
Looking Ahead to 2026
What’s next? Expect:
- Clearer rules on staking and stablecoins.
- Fewer actions if trends hold.
- More guidance docs, less lawsuits.
Crypto firms should still play safe. Register if needed, disclose risks. But the <60% Drop> signals hope.
Final Thoughts
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