The U.S. Securities and Exchange Commission (SEC) has dropped its lawsuit against Richard Heart, founder of cryptocurrency projects HEX, PulseChain, and PulseX. The court dismissed the initial complaint due to a lack of jurisdiction.
SEC's Allegations Against Richard Heart
Richard Heart and his projects were accused by the SEC of raising over $1 billion through unregistered offerings. However, the courts found that Heart's activities did not involve targeting U.S. investors.
Court Ruling and Its Impact
Judge Carol Bagley Amon dismissed the initial complaint in February 2025, citing jurisdiction issues. The SEC's deadline to amend expired, marking a victory for Heart and his projects. No immediate changes in funding or grants followed.
Concerns and Implications for the Crypto Market
Historically, such regulatory dismissals lead to short-term price volatility. Experts suggest that long-term implications will depend on broader market conditions and the ongoing regulatory landscape. Heart celebrated the outcome as a victory for open-source software.
Heart's success in this case is unprecedented, potentially impacting future SEC actions regarding cryptocurrencies. This ruling may influence future regulatory approaches.
