SEC’s Crypto Crackdown Eases After Trump Returns to the White House

From Aggressive Enforcement to a Softer Touch

During the early months of the Biden administration, the Securities and Exchange Commission (SEC) pursued a hard‑line policy against the cryptocurrency sector, launching numerous investigations and treating many digital assets as securities.

Policy Shift Following the 2024 Election

When former President Donald Trump assumed office again in January 2025, the SEC’s enforcement stance noticeably softened. Several pending actions were paused or withdrawn, granting the industry a period of relative calm.

Investigation Shows Benefits for Connected Companies

The Times conducted an investigative report that suggests the regulatory retreat was not merely coincidental. According to the report, the change in enforcement “benefited the cryptocurrency industry,” with particular advantage going to firms that have direct or indirect ties to the Trump administration.

Examples cited include CryptoCo, a digital‑currency exchange with a former Trump campaign advisor on its board, and BlockChain Solutions, a blockchain‑technology provider that secured a federal contract shortly after the policy shift.

Implications for the Market

Analysts warn that the SEC’s inconsistent stance could create uncertainty for investors. While the temporary relief may boost short‑term prices, the lack of clear regulatory guidance could hinder long‑term growth and invite future legal challenges.

Looking Ahead

Industry observers are watching closely to see whether the SEC will revert to a stricter regime if political winds change again, or whether a more predictable framework will emerge under the current administration.