As of February 27, 2025, the U.S. Securities and Exchange Commission (SEC) has significantly altered its legal stance on crypto enforcement, dropping cases against TRON and Gemini.
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This marks the fifth crypto-related case closed since January 20, the inauguration day of former President Donald Trump.
SEC Concludes Investigation into Gemini
The SEC has officially closed its investigation into crypto exchange Gemini, opting not to pursue enforcement action. The news was confirmed by Gemini co-founder Cameron Winklevoss.
The decision follows a 699-day-long investigation and comes 277 days after Gemini received a Wells Notice, an official letter from the SEC signaling potential enforcement action.
The SEC’s probe focused on Gemini Earn, a program that allowed users to lend their crypto assets to Genesis in exchange for interest. Regulators alleged that Gemini and Genesis offered unregistered securities, violating U.S. law.
In 2024, Gemini settled with the SEC for $50 million to resolve the charges related to the program. However, the SEC has not publicly disclosed specific reasons for dropping the broader investigation.
SEC and TRON’s Justin Sun Seek Settlement
The SEC is also exploring a potential settlement with Justin Sun, TRON’s founder and an adviser to the Trump-linked World Liberty Finance, in a civil fraud case.
In a filing on Wednesday, both sides requested a 60-day pause in legal proceedings to negotiate a resolution.
The SEC launched its investigation into Justin Sun and his companies—Tron Foundation Limited, BitTorrent Foundation Ltd., and Rainberry Inc. (formerly BitTorrent Inc.)—in March 2023. The case alleges that Sun engaged in the unregistered sale of securities (TRX and BTT) through bounty programs.
Additionally, Sun was accused of manipulating TRX’s secondary market through wash trading, artificially inflating trading volumes. The SEC also claimed he ran celebrity endorsement campaigns without proper disclosure of payments for promoting TRX and BTT.
In April 2024, Sun and his companies filed a motion to dismiss the lawsuit, arguing that the SEC lacked jurisdiction over foreign entities.
A Broader Shift in SEC Crypto Enforcement
These developments reflect a larger trend of deregulation and rollback of crypto-related enforcement actions under Acting SEC Chair Mark T. Uyeda. Since Gary Gensler stepped down as SEC Chair on January 20, Uyeda has led efforts to reassess enforcement cases initiated during the Biden administration.
Republican SEC Commissioner Hester Peirce has been tasked with leading a crypto regulatory task force. She is actively engaging with firms previously targeted by the SEC and working with industry representatives to craft crypto-specific regulatory guidelines.
In a single month, the SEC has also closed investigations into Coinbase, Robinhood, OpenSea, and Uniswap, opting not to pursue further action.
On the Flipside
- By dropping major cases without explanation, the SEC raises questions about its decision-making process and creates uncertainty around crypto regulations and enforcement.
Why This Matters
While the SEC has not provided detailed reasons for dropping the investigation, these developments suggest a potential shift in the agency’s approach to cryptocurrency regulation.
