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The SEC's decision brought a 160% rise in the 8-year altcoin.
The Securities and Exchange Commission (SEC) announced in a joint statement submitted to the Seattle federal court that it has withdrawn the lawsuit against the blockchain company Dragonchain and its founder Joseph Roets. The decision emphasized that the matter was reevaluated following the reviews and preparations made by the special team established by the SEC regarding cryptocurrency asset regulation.
Previously, the SEC had alleged that Dragonchain raised $16.5 million by conducting an unregistered securities sale through the pre-sale of its project token during the ICO it held in 2017, (. The SEC's withdrawal decision was seen as a reflection of developments in regulatory approaches as well as negotiations between the parties.
The SEC, under the management of Paul Atkins, starting to withdraw lawsuits against cryptocurrency firms raises hopes for a reduction in regulatory uncertainty, while the markets perceive this step as an indication that the regulatory process will mature and collaboration within the sector will strengthen.
After the SEC's decision to withdraw the lawsuit, Dragonchain's token DRGN gained 160% in value.
Published: April 25, 2025 15:39