Crypto enforcement actions dropped by over 70% in 2025 compared to prior years under Gensler. This decline reflects a broader policy overhaul at the . The agency now prioritizes innovation in technologies.
Gensler's Legacy and Departure
Gary Gensler stepped down as SEC Chair on January 20, 2025, amid criticism from the crypto sector. His tenure featured over 100 lawsuits against digital asset firms.
According to a Cornerstone report, the SEC initiated only four new actions post-Gensler in fiscal year 2025. This signals a retreat from aggressive tactics.
Rise of Pro-Crypto Leadership
Paul Atkins assumed the role of SEC Chair in April 2025, following Mark Uyeda's interim stint. Atkins, a former commissioner, advocates for balanced .
He launched Project Crypto in July 2025 to modernize rules for digital assets. The initiative focuses on issuance, custody, and trading.
Atkins stated he anticipates huge benefits from digital assets during a May 2025 address. This contrasts sharply with Gensler's enforcement-first approach.
Key policy Shifts
The SEC dismissed high-profile cases against and in early 2025. These moves facilitated reform in crypto .
According to announcements, dismissals aimed to renew the agency's approach to the industry. This allowed focus on fraud without novel legal theories.
The agency rescinded SAB 121 via SAB 122 in January 2025, easing custody rules for banks. Centralized finance platforms in cefi benefited directly.
Task Forces and Collaboration
Acting Chair Uyeda formed a Crypto Task Force led by Commissioner Hester Peirce in January 2025. It develops frameworks for tokenization and decentralized systems.
The SEC coordinated with the CFTC on joint guidance for spot crypto trading. This harmony addresses perpetual contracts and DeFi in .
Caroline Pham, CFTC Acting Chair, declared the turf war over in September 2025. Agencies now prioritize 24/7 markets together.
Innovation Exemptions and Taxonomy
Atkins pushed an innovation exemption in 2025 to fast-track crypto products. It offers a 12-24 month safe harbor for builders proving decentralization.
He unveiled plans for a token taxonomy to classify cryptocurrencies. This delineates securities from commodities in regulation.
According to The Block, Atkins signaled priorities at a December 2025 summit. He emphasized exemptions and taxonomy for clarity.
Enforcement Reorientation
The SEC rebranded its unit to Cyber and Emerging Technologies in 2025. It combats AI washing and cyber misconduct.
Enforcement now targets fraud harming investors, per a Cleary Gottlieb review. Novel crypto actions decreased significantly.
The agency withdrew Gensler-era proposals like expanded custody rules. This reduced burdens on cefi entities handling digital assets.
Impact on Web3 and Cefi
Web3 projects gained from dismissed investigations into platforms like Uniswap. Innovation flourished without constant regulatory threats.
Cefi exchanges saw legal fees drop by hundreds of millions. According to reports, this fostered institutional adoption.
Stakeholders note lingering challenges in full decentralization tests. Yet, the shift encourages reshoring of capital.
Trends in 2026
The SEC plans rulemaking on tokenized securities this year. Coordination with CFTC continues for comprehensive oversight.
Analysts predict a surge in spot crypto ETFs approvals. This builds on 2025's regulatory momentum.
Atkins remarked
you ain
t seen nothing yet' on the agenda, per The Block. Expect focus on emerging tech like AI in finance.
These transformations highlight the dynamic nature of crypto , providing cefi and firms with predictable paths forward. Adapting to this environment ensures compliance and growth in a maturing market.
