SEC Under Paul Atkins Sees Sharp 60% Decline in Cryptocurrency Enforcement
US securities regulators experienced a significant decline in enforcement actions related to cryptocurrencies in 2025, according to a report by Cornerstone Research. This decrease reflects a marked shift in the agency’s priorities following the appointment of Paul Atkins as chairman of the US Securities and Exchange Commission (SEC) under the Trump administration. The transition in leadership appears to have reshaped how the SEC approaches digital assets, signaling a more selective enforcement strategy.
The report found that the SEC initiated only 13 cryptocurrency-related actions in 2025, compared to 33 in 2024, a nearly 60% decrease, marking the lowest level since 2017. Part of this decline is attributed to the leadership transition, as five of the 13 actions in 2025 were carried over from Gary Gensler’s tenure before he left office in January 2025. The remaining eight cases were initiated during Atkins’s term, all involving allegations of fraud. This shift is particularly significant for cryptocurrency markets, which have spent the past few years adapting to a strict, enforcement-driven regulatory environment.
A Limited Number of Cases and a Clearer Focus
With Atkins assuming the chairmanship, the SEC’s focus on cryptocurrency cases has shifted noticeably. The agency has moved away from broad registration theories and toward prioritizing clear instances of fraud. This narrower focus emphasizes cases where demonstrable harm to investors can be proven, making enforcement efforts more defensible in court.
The report further noted that 29 cryptocurrency-related cases were settled in 2025, including seven that the SEC dropped under Atkins’s leadership. These developments reflect a more selective and strategic approach to enforcement, signaling that the SEC is concentrating on high-impact cases rather than pursuing a high volume of actions.
Financial Penalties Decline Significantly
Total fines imposed on participants in the digital asset market reached approximately $142 million in 2025. According to Cornerstone, this represents less than 3% of the total fines recorded in 2024, highlighting a sharp decline in enforcement activity. The data suggest that while the SEC continues to monitor the market, it is doing so in a more targeted and deliberate manner, focusing on fraud and other egregious violations rather than minor regulatory oversights.
The SEC’s Focus Shifts Beyond the Courtroom
This evolving strategy signals a broader regulatory trend, moving beyond courtroom-driven enforcement toward frameworks that may rely on rules, guidelines, and negotiated standards. Robert Litson, a senior fellow at Cornerstone Research, noted, “The enforcement actions under Atkins reflect a shift in the SEC’s approach to overseeing digital assets, in line with the priorities outlined in early 2025.” He added, “The regulation of digital assets is still in a state of continuous evolution, a trajectory we will be closely monitoring throughout 2026.”
Atkins officially assumed his position in April 2025, following a brief interim period as SEC director. Legal observers have highlighted a broader shift in the regulator’s direction since the leadership change, indicating a deliberate move toward strategic, high-impact enforcement.
If the SEC continues to prioritize cases that clearly fall under fraud, the next phase of US cryptocurrency regulation will likely rely less on sudden lawsuits and more on negotiated rules, guidance, and formal standards. These developments suggest that 2026 could see a more structured and predictable regulatory environment for digital assets, balancing market oversight with clarity and investor protection.
