The U.S. Securities and Exchange Commission (SEC) has significantly altered its approach to cryptocurrency enforcement under the Trump administration, withdrawing from several high-profile cases. The SEC has dropped its lawsuit against Coinbase, the largest crypto exchange in the U.S., and has also closed investigations into other major crypto firms including Gemini, OpenSea, and Robinhood. This shift in policy follows the establishment of a new crypto task force aimed at developing clearer regulatory guidelines for digital assets. Commissioner Hester Peirce has criticized the previous SEC leadership under Gary Gensler for fostering an environment conducive to fraud due to unclear laws and aggressive enforcement tactics. She argued that the SEC's former approach harmed the public and the industry, suggesting that the recent crypto scandals, such as the collapse of FTX, might have been mitigated with clearer regulations. Commissioner Caroline Crenshaw has expressed concerns about the SEC's recent policy changes, particularly regarding the classification of memecoins as securities. She argues that the current guidance lacks legal foundation and could lead to regulatory gaps that bad actors might exploit, potentially undermining market trust. The SEC's decision to pause a fraud case against Chinese crypto entrepreneur Justin Sun came after he invested $30 million into President Trump's World Liberty Financial crypto scheme. This move has raised questions about the influence of political contributions on regulatory decisions.