SEC Commissioner Mark Uyeda said Wednesday at the Financial Markets Quality Conference Psaros Center for Financial Markets and Policy panel that the regulator withdrew civil lawsuits against crypto companies in early 2025 to avoid damaging trust amid a planned "180-degree" policy reversal.

Cases Against Kraken, Ripple, and Coinbase Closed Under Uyeda's Leadership

Uyeda served as acting SEC chair from January to April 2025. According to him, the commission dropped lawsuits filed by the previous leadership, including those against Kraken, Ripple Labs, Coinbase, and other companies.

Goal Was to Avoid Weakening the Regulator’s Position in Court

The commissioner said that continuing the proceedings could have harmed the SEC’s position, as lawyers would have had to defend an approach in court that contradicted the planned policy changes. Uyeda noted there were "significant doubts" that the cases against crypto companies were "justified by law," adding: "I do not intend to put our litigators in a position where they have to defend an interpretation of the commission that is 180 degrees different from what they have already argued in this court."

Critics Linked the Move to Trump’s Policy; Gary Gensler Resigned on Inauguration Day

Many critics described the withdrawal of the lawsuits as payback for the crypto industry’s support of Donald Trump’s 2024 campaign. Trump had promised to fire former SEC Chair Gary Gensler "on day one" if elected; Gensler resigned on the day Trump took office.

Possible Shortage of Members in SEC Leadership

Uyeda has been a commissioner since 2022 and currently serves alongside Paul Atkins and Commissioner Hester Peirce. With Peirce expected to depart in November, only two of five leadership positions may remain filled, and the Trump administration has not announced nominees for the vacancies.