The Securities and Exchange Commission (SEC) has dismissed its lawsuit against the blockchain firm Dragonchain, marking significant changes in regulation.
Dismissal of the Dragonchain Lawsuit
The SEC had sued Dragonchain for conducting an unregistered securities offering through its ICO in 2017, raising $16.5 million from investors. However, on April 24, a joint filing was made in Seattle federal court confirming the lawsuit’s dismissal with prejudice.
SEC's Shift Under New Chairman
The SEC's actions under newly appointed Chairman Paul Atkins reflect a more lenient approach to engaging with the crypto industry, contrasting with the enforcement-heavy strategy of former Chairman Gary Gensler. The new course encourages more dialogue and collaboration rather than litigation.
Market Reacts Positively
Following the announcement of the lawsuit's dismissal, Dragonchain's native token (DRGN) surged by over 95% within a week and more than 5% within 24 hours. Despite this uptick in investor interest, the token's market value still remains below its peak valuation from 2018.
The dismissal of the lawsuit against Dragonchain illustrates broader changes in regulatory approach, emphasizing the need for collaboration and clear guidelines in the crypto sector.
