Dragonchain Token Soars 130% Following SECs Decision to Drop Securities Case
- SEC drops Dragonchain lawsuit, sparking a 130% surge in DRGN token price.
- Dragonchains trading volume jumps 6000% after the SEC lawsuit dismissal.
- SEC enforcement rethink marks pivotal shift led by Crypto Assets and Cyber Unit.
The U.S. Securities and Exchange Commission (SEC) has filed to dismiss its lawsuit against Dragonchain, a blockchain platform, demonstrating its new approach to regulating the cryptocurrency sector. The move comes after the SEC declared a reassessment of its digital assets policy under the current presidential administration.
Background of Dragonchains Lawsuit and Dismissal
In August 2022, the SEC began legal proceedings against Dragonchain for running unregistered securities offerings through its 2017 Initial Coin Offering (ICO) and subsequent token presales. According to the SEC, the DRGN token, which received $14 million from international investors, was classified as a security by applying the Howey Test.
On the other hand, the Dragonchain team believes the token was a utility token intended for use within the platform instead of functioning as an investment asset. Furthermore, the company argued that the SEC had wrongfully applied the Howey Test to cryptocurrency assets and challenged the legal foundation of the agencys claims.
In a joint filing on April 24, 2025, both parties requested that the case be dismissed with prejudice, meaning it will not be refiled. The SEC attributed its decision to dismiss the case to the ongoing work of its Crypto Task Force, which clarifies how digital assets should be classified under federal securities laws. The SECs recent action aligns with a policy shift from this government that has caused multiple significant cryptocurrency legislation reversals at the agency.
Market Reaction and Future Implications
The court decision to drop the lawsuit caused Dragonchains native token, DRGN, to experience an immediate positive price response. The case dismissal created an immediate 134% increase in token value within 24 hours of the announcement, while investors returned their confidence in the project.
The tokens trading volume skyrocketed by over 6000%, with investors showing renewed interest in the cryptocurrency. Despite its recent price boost, the token DRGN trades at a 98% lower value than its all-time high of $5.46.
The cryptocurrency market is highly volatile due to regulatory uncertainty, as evidenced by this swift increase. Despite recent market gains, the Dragonchain token faces hurdles in reaching its previous value. At press time, the token holds a market capitalization of $30.62 million.
The SECs decision to dismiss the lawsuit represents a broader movement within the agency regarding its crypto enforcement initiatives. The new leadership at the agency has been reevaluating its stance on crypto regulation by reassessing existing cases that previously involved companies like Coinbase and Ripple. The regulatory changes reflect President Trumps initiatives to establish a friendly environment toward digital assets.
Read more: https://www.tronweekly.com/sec-decides-to-drop-dragonchain-securities-case/
Text source: TronWeekly
