SEC bids to drop securities suit against Dragonchain over crypto ICO
The US Securities and Exchange Commission (SEC) plans to dismiss its unregistered securities lawsuit against Dragonchain, citing the need for a regulatory framework for crypto assets. A joint stipulation filed in Seattle federal court indicates the case will be dismissed with prejudice and without costs to either party. The SEC had previously sued Dragonchain and its affiliates in August 2024, alleging they raised $16.5 million through an unregistered securities offering involving DRGN tokens. The SEC claimed these tokens were investment contracts under securities laws. Following a settlement offer from Dragonchain, the case was paused in October 2024. The DRGN token surged 95% to over 8.5 cents after news of the dismissal, although it remains significantly down from its peak in January 2018. The SEC has also abandoned other high-profile crypto lawsuits and investigations under the Trump administration, including actions against Coinbase, Ripple, and Kraken.
