Dragonchain Token Surged 104% After the SEC Moved to Drop Its Lawsuit
The SEC and Dragonchain have jointly filed to dismiss their lawsuit regarding unregistered securities offerings, citing policy changes as the reason. The SEC's complaint, originally filed in August 2022, claimed Dragonchain conducted unregistered offerings through its 2017 ICO and a subsequent presale, raising approximately $14 million from about 5,000 investors. Dragonchain argued its DRGN token was a utility token, not an investment, and challenged the SEC's application of the Howey test. The case had been stayed since late 2023 following a settlement offer and a January 2024 executive order from President Trump. The dismissal aligns with the SEC's broader shift in crypto regulation, particularly after establishing the Crypto Task Force to clarify regulatory boundaries. Following the dismissal announcement, Dragonchain's DRGN token price surged 104%, with trading volume increasing by 11,600%. Despite this rally, DRGN remains 98% below its all-time high.
