- A federal judge has paused a lawsuit involving the DeFi Education Fund and 18 Republican-led states against the U.S. Securities and Exchange Commission
- The pause follows the confirmation of Paul Atkins as the new SEC Chair under the Trump administration
- The DeFi Education Fund has also dropped a separate lawsuit against the IRS concerning crypto tax reporting rules
A federal judge has temporarily halted a lawsuit filed by the DeFi Education Fund and 18 Republican state attorneys general against the U.S. Securities and Exchange Commission (SEC), citing a change in leadership at the agency. The lawsuit, initiated in November 2024, challenged the SEC’s regulatory approach to crypto firms. Additionally, the DeFi Education Fund has withdrawn a separate lawsuit against the IRS regarding crypto tax reporting requirements.
Legal Challenge Paused Amid Leadership Change
The lawsuit, initiated in November 2024, accused the SEC of overstepping its authority by aggressively pursuing enforcement actions against crypto exchanges. This week, Kentucky District Court Judge Gregory Van Tatenhove halted the case in the wake of Paul Atkins’ confirmation as the new SEC Chair under President Trump’s administration.
Judge Van Tatenhove granted a 60-day pause, citing the potential for the case to be resolved under the SEC’s new leadership, given its more favourable stance towards the digital asset space. Both parties are required to file a joint report within 30 days to confirm progress toward a resolution. These developments are further evidence of a shift in the U.S. regulatory landscape for cryptocurrencies, coming in the wake of the SEC dropping multiple investigations into crypto and NFT companies.
DeFi Education Fund Drops IRS Case
Separately, the DeFi Education Fund has dropped a lawsuit against the Internal Revenue Service (IRS) that it filed in December 2024. The lawsuit challenged the IRS’s authority to enforce certain crypto tax reporting requirements, but the withdrawal follows the Trump administration’s repeal of the IRS broker rule, which had mandated that DeFi protocols report transactions to the IRS.
This policy reversal is part of a broader trend under the current administration to reduce regulatory burdens on the crypto industry and is another example of the improving relations between the crypto world and the U.S. authorities.
