After a series of legal actions aimed at regulating the cryptocurrency industry, including investigations into major firms and a fraud case against a top crypto entrepreneur, US regulators have made a sudden turnaround. Federal officials announced that memecoins, a risky type of cryptocurrency linked to celebrities or online jokes, would not face strict oversight. The Securities and Exchange Commission (SEC) agreed to drop a lawsuit against Coinbase, the largest crypto company in the United States, along with halting investigations into other prominent crypto firms.
The rapid legal moves by regulators signify a significant shift in policy just over a month since President Trump’s inauguration. The Trump administration had campaigned on promises to support the crypto industry, leading to the nomination of officials with close ties to the sector. The pause in enforcement actions against major crypto companies comes amidst criticism from groups advocating for strong regulation in the industry.
A key figure in this development is crypto entrepreneur Justin Sun, who had been facing a major fraud case filed by the SEC. Sun, who invested in a cryptocurrency venture associated with the Trump family, is now in discussions for a potential resolution with the agency. This shift in approach by the SEC has raised concerns about potential conflicts of interest, particularly as it pertains to regulatory oversight of cryptocurrency projects promoted by the Trump family.
Overall, the recent actions by US regulators underscore a notable change in the government’s stance towards cryptocurrencies, marking a significant departure from the aggressive enforcement measures taken under the Biden administration. The decision to halt legal actions and investigations into major crypto firms, including top executives at companies like Gemini and Coinbase, represents a major victory for the industry and a shift towards more lenient regulation.
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