Dragonchain

Crypto Task Force

Force

Dragon

The US Securities and Exchange Commission is looking to drop its unregistered securities lawsuit against blockchain firm Dragonchain in the agency’s latest crypto-related backdown.&nbsp;In a joint stipulation filed with Dragonchain on April 24 in a Seattle federal court, the SEC said it “believes the dismissal of this case is appropriate,” citing the work of the agency’s <a href="https://cointelegraph.com/learn/articles/sec-crypto-task-force" rel="noopener noreferrer nofollow">Crypto Task Force</a> in helping “develop the regulatory framework for crypto assets.”“The Commission and the Defendants stipulate that this Litigation be dismissed with prejudice [...] and without costs or fees to either party,” the filing reads.The <a href="https://cointelegraph.com/news/2017-icos-aren-t-over-yet-sec-files-suit-against-dragonchain-and-its-founder" rel="noopener noreferrer nofollow">SEC sued Dragonchain, Inc.</a>; its backer, the Dragonchain Foundation; The Dragon Company; and Dragonchain’s founder, Joseph Roets, in August 2024, claiming they raised $16.5 million through a crypto token that was an unregistered securities offering.According to the SEC, the Dragonchain (DRGN) tokens raised $14 million in an August 2017 presale and an initial coin offering (<a href="https://cointelegraph.com/learn/articles/initial-coin-offering" rel="noopener noreferrer nofollow">ICO</a>) that ran in October and November of that year. At the time, it said the company needed to register as the tokens were investment contracts under <a href="https://cointelegraph.com/learn/articles/commodities-vs-securities" rel="noopener noreferrer nofollow">securities</a> laws.&nbsp;The SEC said a further $2.5 million worth of DRGN was sold between 2019 and 2022, which it alleged was used to cover business expenses and develop the firm’s tech.&nbsp;The suit was stayed in October after Dragonchain made a settlement offer to the SEC, which was <a href="https://www.courtlistener.com/docket/64895603/42/united-states-securities-and-exchange-commission-v-dragonchain-inc/" rel="noopener noreferrer nofollow">extended</a> in January after the agency said the case should remain paused due to US President Donald Trump’s <a href="https://cointelegraph.com/news/trump-signs-executive-order-working-group-crypto" rel="noopener noreferrer nofollow">sweeping executive order</a> earlier that month calling for the country’s “leadership in digital assets.”Meanwhile, the DRGN token has jumped 95% over the past day to over 8.5 cents on news of the SEC’s planned dismissal, but it’s still down around 98.5% from its $5.46 peak in January 2018, <a href="https://www.coingecko.com/en/coins/dragonchain" rel="noopener noreferrer nofollow">according</a> to CoinGecko. <figure><img src="https://s3.cointelegraph.com/uploads/2025-04/01966b68-703b-7141-8c99-7c14ce4642bf" title="" alt="SEC bids to drop securities suit against Dragonchain over crypto ICO"><figcaption>Dragonchain’s token jumped after the SEC filed to dismiss its lawsuit. Source: <a href="https://www.coingecko.com/en/coins/dragonchain" rel="noopener noreferrer nofollow">CoinGecko</a></figcaption></figure><h2 id="sec-backs-off-crypto-under-trump">SEC backs off crypto under Trump</h2>It’s the latest case involving crypto that the SEC has abandoned under the Trump administration.The SEC spun up a Crypto Task Force in January, the day after Trump re-entered the White House, to lead the regulator’s engagement with the crypto industry.Related: <a href="https://cointelegraph.com/news/sec-crypto-task-force-ondo-finance-regulation" rel="noopener noreferrer nofollow">SEC task force met with Trump-supporting firms to discuss crypto regulation</a>&nbsp;An agency memo <a href="https://www.sec.gov/files/ctf-memo-dragonchain-3-24-25.pdf" rel="noopener noreferrer nofollow">shows</a> its task force met with Dragonchain representatives on March 24 to discuss how the SEC should approach handling crypto.The SEC has also dismissed some of its most high-profile lawsuits against crypto firms, including its actions against Coinbase, Ripple and Kraken.It’s also dropped investigations into other crypto firms, including OpenSea, Crypto.com and Immutable, with no further action planned.Magazine: <a href="https://cointelegraph.com/magazine/sec-crypto-laws-unclear/" rel="noopener noreferrer nofollow">SEC’s U-turn on crypto leaves key questions unanswered</a>&nbsp;

SEC bids to drop securities suit against Dragonchain over crypto ICO

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