- The SEC seeks to dismiss its case against Dragonchain, citing progress by its Crypto Task Force.
- Dragonchain’s DRGN token sees a price surge following the news, despite remaining significantly below its all-time high.
The Securities and Exchange Commission (SEC) is moving to drop its lawsuit against Dragonchain, a blockchain firm, regarding an unregistered securities offering. This decision marks another instance of the SEC easing its stance on crypto-related cases under the Trump administration, signalling a potential shift in regulatory approach.
Key Developments
In a joint filing on April 24, the SEC stated that dismissing the lawsuit against Dragonchain is appropriate, acknowledging the work of its Crypto Task Force in establishing a regulatory framework for crypto assets.
As reported by DRGN HODler on X,
The lawsuit, initiated in August 2024, accused Dragonchain and its founder and affiliated entities of raising $16.5 million through an unregistered initial coin offering (ICO) of its DRGN tokens.
The SEC alleged that Dragonchain’s DRGN token sales, which included a presale in August 2017 and an ICO in October and November of the same year, violated securities laws by not registering as investment contracts.
Additionally, the SEC claimed that further sales of DRGN tokens between 2019 and 2022, amounting to $2.5 million, were used to cover business expenses and develop the company’s technology.
The Securities and Exchange Commission charged John Joseph Roets and three entities he controls, Dragonchain Inc. (“Dragonchain”), Dragonchain Foundation (the “Foundation”), and The Dragon Company (“TDC”), for their roles in raising $16.5 million in unregistered crypto asset securities offerings,
the report stated.
The case was put on hold in October following a settlement offer from Dragonchain. This pause was extended in January after President Trump’s executive order emphasised U.S. digital asset leadership. This order prompted the SEC to re-evaluate its approach to crypto regulation.
Following the news of the SEC’s planned dismissal, the DRGN token experienced a significant surge, jumping 95% in value. However, despite this increase, the token remains significantly below its peak value from January 2018. DRGN is currently trading at 0.07615, up 89% in the last 24 hours, with a trading volume of $442,000.
The SEC’s Crypto Task Force, formed in January, has been actively engaging with the crypto industry. A memo indicates that the task force met with Dragonchain representatives in March to discuss the regulatory approach to crypto.
On March 24, 2025, Crypto Task Force Staff met with representatives from Dragonchain. The topic discussed was approaches to addressing issues related to the regulation of crypto assets. Dragonchain representatives provided the attached document, which was discussed during the meeting,
the memo stated.
The SEC has also dismissed other high-profile lawsuits against crypto firms like Coinbase, Ripple, and Kraken, and has dropped investigations into firms like OpenSea and Crypto.com, indicating a broader shift in the agency’s enforcement strategy.