SEC crypto fines remaining at only $142 million! Atkinson takes over, enforcement力度 reduced by 60%

Studies show that SEC cryptocurrency enforcement cases decreased from 33 in 2024 to 13 in 2025, a 60% drop reaching a new low since 2017. Fines totaled only $142 million, less than 3% of 2024. After Trump-appointed Paul Atkins succeeded Gensler, policy shifted from registration theory to focus on fraud. Of the 13 cases, 8 were initiated under Atkins, all involving fraud charges.

SEC Enforcement Cases Plunge 60%, Reaching Lowest Since 2017

(Source: Cornerstone Research)

In 2025, U.S. securities regulators significantly reduced enforcement actions against cryptocurrencies. A report by Cornerstone Research notes that after Donald Trump’s administration appointed Paul Atkins as SEC Chair, regulatory priorities shifted dramatically. The report finds that in 2025, the SEC launched 13 crypto-related actions, down from 33 in 2024—a 60% decrease, the lowest level since 2017.

This shift is crucial for the crypto market. Over the past few years, the crypto industry has been preparing for enforcement regulation. During Gensler’s tenure, the SEC was known for aggressive enforcement, filing numerous lawsuits attempting to classify most crypto assets as securities. This “regulation through enforcement” strategy sparked strong industry backlash, with many companies arguing that SEC’s arbitrary enforcement without clear rules harmed innovation and market development.

Part of the statistics reflect the impact of leadership change. Of the 13 actions, 5 were initiated before Gary Gensler’s departure in January 2025, and 8 were launched under Atkins. All 8 involved fraud allegations rather than vague securities registration issues. This focus indicates that under Atkins, the SEC adopted a more targeted enforcement approach, prioritizing clear-cut fraud cases over broad industry regulation through litigation.

The reduction in case numbers itself signals a major policy shift. Going from 33 to 13 cases is not just a numerical change but a fundamental change in regulatory philosophy. Gensler’s SEC employed a “casting a wide net” approach, investigating and litigating numerous crypto projects to establish regulatory precedents. Under Atkins, the SEC has adopted a “precision strike” strategy, focusing on well-supported fraud cases to avoid widespread conflict with the industry.

Fines Plummet 97%, Remaining at $142 Million

Meanwhile, in 2025, fines imposed on digital asset market participants totaled only $142 million, which Cornerstone states is less than 3% of the total fines in 2024. This stark contrast implies that in 2024, fines totaled approximately $4.7 billion. Dropping from $4.7 billion to $142 million represents nearly a 97% decrease, vividly illustrating the shift in regulatory attitude.

The sharp decline in fines reflects not only fewer cases but also a change in case nature. During Gensler’s era, the SEC tended to sue large crypto firms, often involving hundreds of millions or billions of dollars in transactions, resulting in high fines. Under Atkins, the focus on fraud cases—though more serious in nature—generally involved smaller amounts, leading to a significant drop in total fines.

The same report also notes that in 2025, 29 crypto-related lawsuits were resolved, including 7 dismissed under Atkins’ leadership. These dismissals may include long-standing cases against Ripple, Coinbase, and others. The withdrawals or settlements of these cases suggest that the new SEC leadership is clearing out legacy lawsuits, unwilling to pursue cases with low chances of success or high controversy.

The number of resolved lawsuits (29) even exceeds the 13 new cases filed, indicating that the SEC’s overall crypto litigation is decreasing. This “clean-up of existing cases and control of new ones” strategy brings certainty to the market, as many long-pending regulatory risks are gradually being eliminated.

Regulatory Focus Shifts from Registration Theory to Investor Protection

As the SEC under Gensler emphasized broad registration theory, the focus was on classifying most tokens as securities requiring registration or exemption. This approach faced legal challenges; for example, in the Ripple case, a judge partially dismissed SEC’s claims, ruling that in some cases XRP sales did not constitute securities offerings. These legal setbacks weakened SEC’s strategy of building regulation via enforcement.

Under Atkins, the SEC has taken a more pragmatic path. Focusing on fraud cases means enforcement aims to protect investors from clear misconduct rather than defining industry-wide regulation. Fraud cases typically involve false statements, misappropriation, or Ponzi schemes—illegal acts with higher chances of success in court compared to vague securities definitions.

Robert Letson of Cornerstone Research states: “Enforcement actions under Chairman Atkins reflect a shift in SEC’s approach to digital asset regulation, consistent with the priorities set early in 2025.” This confirms that the policy shift is deliberate. Atkins made the new regulatory philosophy clear early on, and enforcement data shows this philosophy is being implemented.

“Digital asset regulation remains evolving, and we will closely monitor developments in 2026.” Letson’s comment hints that the current low enforcement intensity may be temporary. As new rules and guidance are issued in 2026, the SEC might establish clearer regulatory frameworks, potentially increasing enforcement under the new regime.

2026 Regulatory Focus Shifts to Rulemaking Rather Than Litigation

After a brief acting chair tenure, Atkins officially took office in April 2025. Legal observers note that since the leadership change, the overall tone of the agency has shifted more broadly. If the SEC continues prioritizing fraud-related cases, the next phase of U.S. crypto regulation may no longer depend on sudden lawsuits but on the agency’s rulemaking, guidance, or standards in 2026.

This shift has profound implications for the industry. Enforcement through litigation creates high uncertainty, as each case can set new legal precedents, and companies cannot predict whether their business models will be targeted. Rulemaking provides greater certainty, allowing firms to operate within clear rules, knowing what is permitted and what is not.

The rulemaking process typically involves public consultation, giving the crypto industry a chance to participate in shaping regulation. During Gensler’s era, industry voices were often ignored, with the SEC unilaterally advancing its agenda through enforcement. If Atkins truly shifts toward rulemaking, crypto firms can contribute technical insights and business realities, helping regulators craft more reasonable and implementable rules.

Market reactions show that crypto prices remained relatively stable after Atkins took office, despite macroeconomic volatility, without the sharp declines caused by regulatory panic. This stability partly results from the significant reduction in SEC enforcement activity, alleviating fears of sudden “Wells notices” (formal enforcement warnings).

However, reduced enforcement does not mean a regulatory vacuum. The SEC under Atkins still targets fraud, which is necessary for long-term industry health. Clearing out bad actors can improve the overall reputation of the crypto market and attract more compliant participants. The key is balancing investor protection with avoiding overregulation that stifles innovation.