The Securities and Exchange Commission (SEC) has officially moved to dismiss its lawsuit against blockchain firm Dragonchain, signaling a significant change in its regulatory direction.
A joint filing submitted to the Seattle federal court on April 24 confirmed the lawsuit’s termination with prejudice, preventing it from reopening.
According to court documents, the SEC accused Dragonchain of conducting an unregistered securities offering through its 2017 initial coin offering. During the DRGN token sale, the agency charged the firm for raising $16.5 million from investors as the tokens qualified as federal securities.
The commission marked token sales conducted by Dragonchain between 2019 and 2022 as unlawfully conducted.
Also Read: SHIB Marketing Lead Lucie Eyes Top 10 Spot as Shiba Inu Pushes to Overtake DOGE
All parties involved decided to drop the case without making financial obligations for legal fees payable. The Crypto Task Force’s initiatives motivated the SEC’s approval of the settlement. The agency dismissed the case in line with its present enforcement priorities and emphasis areas.
Trump-Era SEC Leadership Reshapes Crypto Regulation Approach
Besides addressing the lawsuit, the SEC’s move reflects broader changes under President Donald Trump’s second term. Paul Atkins, sworn in recently as the new SEC Chair, has signaled a shift toward more collaborative engagement with the crypto industry.
This marks a sharp contrast to the enforcement-heavy strategy previously championed by former Chair Gary Gensler during the Biden administration.
The Crypto Task Force met with Dragonchain representatives on March 24 specifically to discuss blockchain token regulations. The dialogue-focused meetings demonstrate that stakeholders prefer discussion over litigation to handle crypto-related matters.
Following the news, Dragonchain’s native token DRGN surged by more than 95 percent within a week and over 5 percent within 24 hours. After hitting a peak at $5.46 in 2018, the DRGN token shows increased investor engagement, but its market value still stands below that peak.
Additionally, SEC Chair Paul Atkins has already made his first public remarks on digital assets, emphasizing the urgent need for clear and consistent regulations. His comments came during the agency’s third crypto industry roundtable, which also discussed custody rules and featured speakers from Kraken, Fireblocks, and Fidelity.
Conclusion
The dismissal of the Dragonchain lawsuit signals a broader regulatory pivot as Trump’s SEC leadership pushes for industry collaboration over courtroom battles.
Also Read: Floki Inu Price Surges Over 2 Percent as Analysts Predict Major Breakout
