President Donald Trump signed an executive order on January 23, 2025, that triggered a massive reorganization of the crypto oversight in federal government agencies. The order requires regulatory bodies to identify, amend, or revoke existing crypto guidance in a set period.
In addition, the order requires agencies to identify regulations and guidance about digital assets within 30 days. On the sixth day, they should recommend which items to revoke, revise, or formalize by rulemaking. Within 180 days, the working group has to submit a report to the president’s assistant for national economic policy.
The report will present a new framework for federal regulation of digital assets, including stablecoins, and address the protection of consumers, risk management, and market supervision, representing a direct break from past policies.
Meanwhile, with the initiative, on January 21, 2025, the U.S. Securities and Exchange Commission initiated a Crypto Task Force. Chairman Commissioner Hester Peirce, the group was instituted two days after the signing of the executive order. It aims to develop a certain regulatory framework to provide market participants certainty and limit dependence on enforcement.
SEC Task Force Prioritizes Registration and Jurisdictional Boundaries
The SEC’s crypto task force has listed various focus areas, including clarifying licensing requirements for digital assets and finding limits to regulations. In addition, one of the needs is to establish the security status of crypto assets.
The task force is also developing a structure that will allow issuing no-action letters for activities outside of SEC jurisdiction. These letters would prevent future enforcement by making it easier for companies to understand what they are expected to comply with.
However, the task force is also in the process of a temporary relief program for coin and token offerings. This relief would be retroactive and prospective if the issuers provided the required disclosures and agreed to the SEC’s anti-fraud powers. According to this proposal, tokens would not be securities.
Moves are being made towards devising a tightened procedure for crypto offerings registration. The agency is amending guidance to special-purpose broker-dealers. These adjustments outline how dealers treat crypto asset securities. Moreover, the task force formulates custodial outlines for investment advisers and develops oversight regulations for staking and lending programs.
Additionally, the task force is working on guidelines for the taxation of cryptocurrency transactions. The SEC plans to clarify the standards for SRO applications for listing new digital products. Furthermore, it’s also important to maintain the relationship between the crypto assets and the existing parameters of clearing agencies and transfer agents.
SEC Closes Investigations and Declares Meme Coins Are Not Securities
February 2025 marked a turning point in federal enforcement against digital asset firms. SEC closed investigations in Robinhood Crypto and OpenSea on the 21st of February. In an 8K filing, Robinhood stated that the SEC was no longer interested in pursuing a potential enforcement action.
The allegations violated the Securities Exchange Act contained in Sections 15(a) and 17, which were written in the 2024 Wells Notice. No further action was taken.
On the same day, NFT platform co-founder OpenSea announced the SEC had closed its probe into the NFT platform. The Commission did not re-identify NFTs sold on the platform as securities, ending several calculations regarding the regulatory risk in the NFT business.
In addition, Coinbase, on February 21, revealed that the SEC would drop grievances of a 2023 suit. The lawsuit alleged that Coinbase operated as an unregistered exchange, broker, and clearing agency. As the company put it, the SEC and Coinbase agreed to a principal dismissal.
SEC made it public that the legal status of meme coins was an issue as far as February 27, 2025, is concerned. The Commission concluded that meme coins do not fall under the definition of securities. Therefore, individuals or entities dealing with the offer or sale of meme coins do not need to register under the Securities Act of 1933. The SEC declared that holders and purchasers of meme coins are not granted the protection of federal securities laws.
Furthermore, the February decisions signal a direction change for the SEC enforcement strategy. Even as fraud and more money laundering continue, the agency seems to constrain actions connected to the violations in registration. This change is consistent with the Trump administration’s overall regulatory adjustment in January.
OKX Pleads Guilty Amid Enforcement Rollbacks
Despite decreased enforcement activities, one major case moved along. OKX crypto exchange pleaded guilty on February 24, 2025, to running an unlicensed money-transmitting business. OKX agreed to forfeit $420.3 million and was ordered to pay a further $84.4 million fine. The move came after a Department of Justice probe that revealed that OKX permitted U.S. users on its operating platform despite not having licenses.
Prosecutors said that OKX did not ensure sufficient protocols to counter any money laundering activity. These lapses would have facilitated the regaining of illicit funds into the platform. The plea agreement offered for OKX does not incorporate any independent oversight. Meanwhile, OKCoin USA, the company’s U.S. affiliate, can still serve U.S. customers.
Private Litigation Emerges as Regulatory Backstop
Though federal enforcement is slowing, Private class actions persist. On the 14th of January 2024, plaintiff Alister Watt filed a civil suit for OKX. The complaint asserts that people who are criminals used OKX to launder stolen funds. Watt says his stolen funds have been tracked to an OKX account. The suit charges OKX and its affiliates with inadequate application of compliance and anti-money laundering procedures.
The case shows that private plaintiffs are reaching for compensation as regulators limit. Industry watchers assume that civil litigation can become a key instrument of accountability. These suits are outside federal enforcement and do not require regulatory developments to proceed.
Even the ongoing class action case against OKXns shows that enforcement results do not shield companies from more liability. Civil courts are mandated to impose fines/operational penalties, not depending on criminal or administrative settlements.
Meanwhile, with the increased number of investors coming into the crypto space, custody, fraud, and disclosure could trigger more lawsuits. These activities could circumvent a downsized SEC or CFTC that did not address them. Public enforcement might be slow, but the courts are always open to aggrieved investors and consumers.
Global Policy Landscape Remains Fragmented
While the United States redefines the approach to regulation, other countries pursue different strategies. El Salvador and the Central African Republic are now regulating that Bitcoin should be incorporated into the national financial systems. The European Union is moving forward with the Markets in Crypto Assets (MiCA) to harmonize crypto laws in its member states.
However, China has a strong position regarding digital assets. Officials have banned trading and mining, with the provision of financial stability as an issue. Meanwhile, Singapore and Switzerland continue to drive responsible innovation through licensing and laid-out compliance paths.
