US regulators sharply reduced crypto enforcement in 2025 after Paul Atkins took over as chair of the Securities and Exchange Commission. A new report shows a major shift in how the agency approaches digital assets.
According to Cornerstone Research, the SEC opened just 13 crypto-related enforcement actions in 2025. That number is down from 33 cases in 2024, marking a 60% decline and the lowest level since 2017.
The report notes that leadership changes played a key role. Five of the 13 cases were started before Gary Gensler left the agency in January 2025, while eight were launched after Atkins assumed control.
Under Atkins, new cases focused mainly on fraud rather than broad regulatory violations. This marks a shift away from aggressive registration-based actions that defined earlier enforcement efforts.
Cornerstone also found that the SEC resolved 29 crypto-related cases in 2025. Seven of those cases were dismissed after Atkins took office, signaling a softer enforcement stance.
Financial penalties tied to crypto cases also fell sharply. Total fines reached $142 million in 2025, less than 3% of the amount imposed in the previous year.
Legal experts say the SEC is now prioritizing cases that show clear investor harm. This makes them easier to defend in court and more aligned with traditional enforcement standards.
As the SEC looks ahead to 2026, observers expect crypto oversight to rely more on rulemaking and guidance. Fewer surprise lawsuits could give way to clearer regulatory frameworks for the industry.
