The U.S. Securities and Exchange Commission (SEC) has officially withdrawn its ongoing lawsuit against blockchain technology company Dragonchain.
In a joint statement submitted by both parties on Thursday, it was highlighted that the decision to drop the case was based on the establishment of the SEC’s newly formed Crypto Task Force at the beginning of the year.
Reasons Behind the Withdrawal of the Case Against Dragonchain
The SEC had filed a lawsuit against Dragonchain and several associated entities in August 2022, alleging the sale of “cryptocurrency securities” linked to the initial coin offering (ICO) conducted in 2017. The complaint claimed that the company was engaged in the trading of these securities.
During the tenure of former SEC Chairman Gary Gensler, who maintained a strict stance against the cryptocurrency sector, many similar charges were levied against cryptocurrency companies. However, with Gensler’s departure and Donald Trump’s potential return to the presidency, there has been a noticeable shift in the institution’s policies.
The Role of the Crypto Task Force and Its Impact on the Market
The newly established Crypto Task Force by the SEC aims to clarify which cryptocurrencies should not be classified as securities. The Task Force officially declared that “memecoins,” which are known for their humorous and community-driven nature, fall outside the SEC’s jurisdiction.
In the document submitted Thursday, it stated, “Under the current circumstances and using its discretion, the Commission believes it is appropriate to dismiss this case.” As a result, the legal pressure on Dragonchain has been fully lifted.
The SEC’s policy change is expected to provide relief not only to Dragonchain but also to the broader cryptocurrency market. These developments have ignited new discussions filled with hope and anticipation among industry stakeholders.
Decision Sends Altcoin DRGN Soaring
Altcoin DRGN
Following this news, the main network asset of Dragonchain, DRGN coin, surged significantly. According to CoinMarketCap data, DRGN gained an astonishing 95.8% in value over the last 24 hours, reaching up to $0.07782. Continued volatility in this altcoin is anticipated.