SEC Seeks Dismissal of Dragonchain Suit, Citing Launch of Crypto Task Force

The U.S. Securities and Exchange Commission (SEC) formally sought to dismiss its lawsuit against blockchain technology company Dragonchain because the agency had recently launched its Crypto Task Force as a critical reason for the agency's change in strategy for enforcing cryptocurrency regulations.

The SEC and Dragonchain jointly filed a stipulation for dismissal on Thursday, closing the lawsuit that arose out of Dragonchain's 2017 initial coin offering (ICO), which the agency had already claimed involved unregistered sales of crypto asset securities.

From Enforcement to Policy Shift

The suit was initially brought in August 2022, when the previous SEC Chair, Gary Gensler, was at the helm and had a tough-on-crypto approach. Back then, the SEC had already brought several enforcement actions against crypto companies, such as charges against Coinbase, Kraken, and others for listing unregistered securities.

But under the present Donald Trump administration, the SEC has significantly shifted towards a more crypto-friendly approach. Since Gensler's exit, the Commission has withdrawn a number of high-profile cases and reduced enforcement efforts.

Role of the Crypto Task Force

The SEC's Crypto Task Force, which started in January, was cited in the dismissal filing. The task force was charged with making it clearer what digital assets are not securities and has stated openly that most memecoins are beyond the jurisdiction of the SEC.

"In consideration of the above, and in the exercise of discretion and as a matter of policy, the Commission finds the dismissal of this case to be appropriate," the SEC said in Thursday's filing.

Market Reaction: DRGN Price Skyrockets

After the news of the case dismissal, the price of Dragonchain (DRGN) skyrocketed. As per CoinMarketCap, DRGN increased by 95.8% over the last 24 hours and is now trading at $0.07782.

The SEC's shifting stance and its new Crypto Task Force could signal a wider regulatory shift, one that

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