Dragonchain’s DRGN collected more than 97% after the US Securities and Exchange Commission said that it intends to reject its long-term lawsuit against the project on alleged non-registered sale of securities.
By one joint application On April 24, the SEC and Dragonchain agreed that the case must be rejected with prejudice, which means that it cannot be filled again. The SEC quoted the work of his newly established crypto task force and said that dropping the suit was the right step.
The lawsuit, originally submitted in August 2022, accused Dragonchain, the foundation and founder Joseph Roets of the collection of $ 16.5 million through a non -registered token sale.
The committee’s case was aimed at a presale of 2017 and ICO that collected $ 14 million through DRGN tokens, with an extra $ 2.5 million sold between 2019 and 2022 to finance business activities and technical development.
At the time, the supervisor argued that DRGN qualified as an investment contract and should have been registered under the securities laws.
However, the case was paused in October 2024 after Dragonchain had submitted a settlement offer and was later extended in January, after a large executive order from President Trump in which the US was called to play a leading role in digital assets.
The order led to a broader reassessment of how cryptocurrency is regulated in the US, and the SEC quoted this shift in the approach to the decision to withdraw from the Dragonchain right case.
In fact, the newly formed crypto task force of the SEC, founded the day after Trump returned to the office, met Dragonchain representatives on March 24. By one Internal Bureau MemoThe discussion was aimed at how the SEC crypto regulation should approach, with a focus on blockchain’s non-financial applications.
The Dragonchain team, led by founder Joe Roets, argued that blockchain should be seen as fundamental software, used for transparency, identity management and automation, rather than purely as a financial instrument.
For Dragonchain, the turning point meant a sharp reversal for DRGN, which has been in a downward trend since 2021. From the moment of the press, DRGN is still heavily down from the peak of 2018, but the token formed two god -candles after the news broke out, almost 100% shot in the last 24 hours.
Since the beginning of the year, the SEC has steadily returned from some of the largest crypto fights. It withdrew from long -term lawsuits against Coinbase, Ripple and Gemini, things that once defined the hard position of the office in relation to digital assets under former chairman Gary Genler.
As previously reported by crypto.news, it recently dropped his fraud case against HEX founder Richard Heart, after a federal court threw the complaint and the SEC before did not change it.
