HomeCrypto News StoriesPolicyJudge Pauses SEC Lawsuit Amid Leadership Shift in Crypto Case

Judge Pauses SEC Lawsuit Amid Leadership Shift in Crypto Case

Date:

  • A federal judge has paused a lawsuit that seeks to question the SEC’s role in regulating cryptocurrencies.
  • This is in light of changes in the SEC’s leadership, with the recent appointment of Paul Atkins as its head.
  • Under its new leadership, the SEC is evaluating all of its prior moves concerning cryptocurrencies.

A major lawsuit challenging the authority of the Securities and Exchange Commission (SEC) in matters concerning virtual assets has been put on hold for 60 days by a federal judge. The case was initiated in November 2024 by 18 Republican state attorneys general and the DeFi Education Fund. 

They criticized the SEC for overstretching its regulatory role especially on operations of cryptocurrency exchanges. In their arguments, the plaintiffs such as those from Texas, Florida and Ohio criticized the SEC actions as being outside federal authority and infringing with states’ rights.

On April 16, Judge Gregory Van Tatenhove of the Kentucky District Court agreed on the delay, citing the SEC’s request for the pause. The agency said that the change in the structure of the leadership might prevent the need for legal action. Judge Van Tatenhove gave all the concerned parties a chance to respond within 30 days due to the ongoing transition in leadership at the SEC, which may affect the case direction.

SEC’s New Leadership Could Change Course on Crypto Regulation

The move to pause the case has come at a time when there is a change of leadership at the SEC. In April 2025, the former Wall Street advisor and cryptocurrency advocate Paul Atkins became the SEC chairman. He has taken over the position from Mark Uyeda, who was earlier named the acting chair by President Donald Trump. The appointment of Atkins may signify a shift in the future attitude of the SEC towards the cryptocurrency market.

The leadership change at the commission is expected to reconsider its position on the regulation of the agency, given the aggressive measures under Gary Gensler’s tenure. During the tenure of Gensler as the head of the SEC, the commission pursued aggressive measures against various crypto platforms and exchanges. However, Atkins is viewed as a more deregulatory figure who can change the SEC’s approach to issues related to cryptocurrency.

Broader Shifts in U.S. Crypto Regulatory Landscape

The halt of the SEC aligns with the general shift in this industry’s regulations regarding virtual assets. On the same day the judge issued the halt, the DeFi Education Fund, together with the Blockchain Association and the Texas Blockchain Council, dropped a different case against the IRS. The case concerned the IRS’s “DeFi broker rule” that had intended to require decentralized finance platforms to report users’ transactions. This rule was nullified after President Donald Trump signed a bill on April 11, 2025, which repealed such regulation.

Since the change of leadership at the SEC, the agency is reconsidering some of the actions and policies previously taken. On April 5, the SEC began revisiting some of the statements issued by its staff that affected the crypto industry. This review involves examining a 2019 framework that focuses on the steps used to evaluate if digital assets qualify as investment contracts under the Howey test.

You May Also Like

SEC Ends Legal Battle With Ripple in $50 Million Settlement

Ripple and the SEC agreed to settle their XRP lawsuit with $50 million payment to the regulator.Originally, the SEC sought $2 billion, but a court restricted penalties to $125...

Missouri Set to Become First State to Eliminate Capital Gains Tax

Missouri’s bill exempts capital gains from taxes, aiming to attract crypto investments.The tax exemption might cost the state over $430 million in the first year.Lawmakers hope the reform will...

Coinbase CEO Hints at Last Chance for Crypto Law Before Trump’s Token Takes Over

Armstrong urges urgent U.S. crypto laws as Trump-linked stablecoin gains global traction.GENIUS and FIT21 bills face Senate resistance over security and compliance concerns.Lawmakers risk losing stablecoin market to offshore...

New Hampshire Becomes First U.S. State to Pass Strategic Bitcoin Reserve Bill

New Hampshire’s law allows the state to invest in Bitcoin and other digital assets.The law mandates secure custody for digital assets through regulated U.S. custodians.Satoshi Action’s framework paves the...
Raymond Munene
Raymond Munene
Raymond Munene is an experienced cryptocurrency writer with a deep understanding of blockchain technology, cryptocurrencies, and market trends. With years of expertise in crypto, he specializes in crafting insightful and informative articles on a wide range of topics, including DeFi and Web3. His writing aims to educate and engage readers, drawing from his comprehensive knowledge of the crypto industry.

Subscribe To Our Weekly Picks!

- Join over 76,000+ subscribers

- Weekly picks delivered to your email

- It's free to subscribe!

Latest Altcoin News

SPONSORED ADVERTISEMENTspot_img

Latest News Stories

SEC Ends Legal Battle With Ripple in $50 Million Settlement

Ripple and the SEC agreed to settle their XRP lawsuit with $50 million payment...

Missouri Set to Become First State to Eliminate Capital Gains Tax

Missouri’s bill exempts capital gains from taxes, aiming to attract crypto investments.The tax exemption...

Celebrity Liability in FTX Collapse—Did They Really Know the Risks?

A Florida judge dismissed most claims against celebrities like Tom Brady and Stephen Curry,...

OCC Clears U.S. Banks to Launch Crypto Services Without Approval

OCC allows U.S. banks to provide cryptocurrency services without first obtaining regulatory approval.Banks can...

Astar Network Unveils Tokenomics 3.0 with Fixed Supply and Fee Burn

Astar shifts to fixed supply Tokenomics 3.0, capping ASTR at 10.5B and using exponential...