SEC Commissioner Uyeda: Dropping Some Crypto Lawsuits to Avoid Damaging the Regulator's Credibility

September 24: U.S. SEC Commissioner Mark Uyeda stated that the agency has abandoned several cryptocurrency cases left over from the previous administration, as continuing to defend in court legal interpretations that are about to be overturned could damage the SEC's credibility.

Uyeda said that with the SEC preparing to make a "180-degree turn" on the relevant legal interpretations, he does not want the regulator's litigation attorneys to continue defending the previous positions in court. He stated that continuing to uphold views that are ultimately going to be overturned would "damage the SEC's credibility."

Additionally, Uyeda described the SEC's "innovation exemption" for tokenized securities as a "pilot program," believing that the mechanism could create "a large number of potential opportunities" for new entrants and traditional financial institutions.