One year after the resignation of SEC Chair Gary Gensler, the U.S. Securities and Exchange Commission has undergone a dramatic policy reversal under the Trump administration. Gensler, who was heavily criticized by the crypto industry for his regulatory approach, resigned in January 2025. He was succeeded by Acting Chair Mark Uyeda and later confirmed Chair Paul Atkins, leading to a restructuring of the agency's leadership to include only Republicans.
The SEC has since dismissed multiple high-profile investigations and enforcement actions. In February 2025, the agency dropped its civil enforcement action against Coinbase, initially filed in 2023. This was followed by the termination of investigations into Robinhood Crypto and Uniswap Labs. A significant policy shift occurred in March 2025 when the SEC dropped its appeal in the long-running enforcement action against Ripple Labs.
These dismissals raised questions among lawmakers about potential influence from President Trump, who has close ties to the crypto industry. The Trump family has backed World Liberty Financial, launched a memecoin (Official Trump - TRUMP), and started a crypto mining venture called American Bitcoin, with some estimates suggesting over $1 billion in profits by June 2025.
Concurrently, legislative efforts to provide regulatory clarity have hit a roadblock. The Digital Asset Market Clarity (CLARITY) Act, which passed the House in July 2025, is delayed in the Senate. Coinbase CEO Brian Armstrong withdrew his support for the bill last week, specifically objecting to provisions that would restrict stablecoin yield. This led the Senate Banking Committee to postpone a key markup hearing.
Armstrong, attending the World Economic Forum in Davos, stated he will continue working on the bill, meeting with bank CEOs to find common ground, particularly on stablecoin regulations that create a "win-win" for crypto and traditional finance. He aims to relay these discussions to the Senate to drive progress.
Meanwhile, the SEC held a series of crypto roundtables in 2025, but their relevance is uncertain pending congressional action. All Democratic commissioners, including Caroline Crenshaw, the agency's last crypto skeptic, have now departed, leaving the SEC without its traditional bipartisan balance.
