SEC Explains Crypto Case Dismissals as Hester Peirce Departure Nears
by Maisie Morrison · BlockonomiTLDR
Table of Contents
- SEC Commissioner Mark Uyeda said the agency dropped crypto cases in early 2025 to avoid credibility problems in court.
- He said the SEC was preparing a “180-degree change” in its approach to crypto rules.
- Cases against Kraken, Ripple Labs and Coinbase were dropped while Uyeda was acting chair.
- Critics called the move payback for the crypto industry’s support of Donald Trump’s 2024 campaign.
- Commissioner Hester Peirce is expected to leave in November, leaving the SEC with two of five members.
Securities and Exchange Commission Commissioner Mark Uyeda said the agency dropped many cases against crypto companies in early 2025 to protect its credibility in court. He made the comments on Wednesday.
Uyeda served as acting chair of the SEC from January to April 2025. He led the agency before Paul Atkins was confirmed as chair.
He spoke during a panel at the Psaros Center for Financial Markets and Policy’s Financial Markets Quality Conference.
Why the SEC Dropped the Crypto Cases
Uyeda said the SEC was preparing a “180-degree change” in how it made rules for the crypto industry. The civil cases had been filed under the previous administration.
He said continuing the cases could have hurt the agency. SEC lawyers would have been arguing positions in court that went against the commission’s planned new policies.
“I’m not about to have our litigators, even though they’re having cases that were authorized under the prior administration, stand up in court and have a commission interpretation be issued that is a 180-degree change from what they’d been arguing for that court,” Uyeda said.
“I think that hurts [our] credibility as an agency,” he added.
Uyeda also said there had been serious concerns about whether the cases against crypto companies were justified under the law.
Cases Against Kraken, Ripple and Coinbase
While Uyeda was acting chair, the SEC dropped cases against several major crypto firms. These included Kraken, Ripple Labs and Coinbase, among others.
Critics said the decisions looked like payback for the crypto industry’s support of President Donald Trump’s 2024 campaign.
Many of the cases were filed while Gary Gensler led the SEC. Trump had promised to fire Gensler “on day one” if he won the election.
Gensler resigned on the day Trump took office in January 2025.
Uyeda has been an SEC commissioner since 2022. He now serves on the agency’s leadership panel with Chair Atkins and Commissioner Hester Peirce.
The commission is designed to have five members. Only three of those seats are currently filled.
Peirce is expected to leave the agency in November. After she departs, the SEC will have only two of its five members.
Trump has not announced any nominations to fill the open seats.