Former SEC Acting Chair Says Agency Dropped Crypto Cases to Protect Its Credibility

SEC Commissioner Mark Uyeda says the agency walked away from many crypto lawsuits in early 2025 because arguing them in court could have damaged its standing. Uyeda served as acting chair before Paul Atkins was confirmed. He said the commission was preparing a “180-degree change” in rulemaking, and the civil cases filed under the previous administration no longer fit that direction.

What Uyeda Said at the Conference

Speaking on a panel at the Psaros Center for Financial Markets and Policy’s Financial Markets Quality Conference, Uyeda said there were “significant concerns” that the cases were justifiable under law. He also said he would not send agency litigators into court to defend positions the commission was about to reverse, since that would hurt the SEC’s credibility.

Kraken, Ripple and Coinbase Cases

During his time as acting chair, from January to April 2025, the SEC dropped cases against Kraken, Ripple Labs, Coinbase and others. Critics called the move payback for the industry’s support of Donald Trump’s 2024 campaign. Trump had promised to fire then chair Gary Gensler on day one, and Gensler resigned the day Trump took office.

SEC Leadership Shrinks

Uyeda has been a commissioner since 2022 and sits on the leadership panel with Atkins and Commissioner Hester Peirce. Peirce is expected to leave in November, which would leave two of five seats filled. Trump has not named any replacements.