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- The U.S. Securities and Alternate Commission (SEC) has dismissed its lawsuit against Dragonchain, citing progress by its Crypto Project Drive
- The case, which started in 2022, accused Dragonchain of raising $16.5 million by an unregistered securities offering
- Following the dismissal, Dragonchain’s DRGN token surged by over 95%
The U.S. Securities and Alternate Commission (SEC) has formally dropped its lawsuit against blockchain platform Dragonchain. The case, initiated in 2022, alleged that Dragonchain performed an unregistered securities offering for the length of its 2017 preliminary coin offering (ICO). The dismissal, influenced by the SEC’s newly fashioned Crypto Project Drive, ended in a nearly doubling of Dragonchain’s DRGN token.
From Disney to Capability Damages
Dragonchain, at the origin developed at Disney in 2014 and later spun out, raised roughly $16.5 million by its DRGN token sale in 2017. The SEC filed a lawsuit in 2022, claiming that the ICO constituted an unregistered securities offering, violating federal licensed guidelines, with the case moreover highlighting extra DRGN sales between 2019 and 2022, which the SEC alleged were old fashioned to fund business operations and expertise fashion.
On the other hand, ahead of the SEC’s case might also manufacture valuable headway beneath Gary Gensler’s tutelage, the contemporary survey company has determined to fall the case, aligning with a broader shift in its come to cryptocurrency laws. Below the steering of its newly established Crypto Project Drive, the SEC is reevaluating its enforcement suggestions; the duty power targets to grasp a regulatory framework that balances investor protection with the innovative seemingly of blockchain expertise.
The DRGN Roars
The dismissal of the lawsuit had an instantaneous affect in the marketplace, with Dragonchain’s DRGN token experiencing a surge of over 95%. On the other hand, the undertaking itself has by no scheme reached the ranges of adoption that were hoped in 2017, and so it is miles quite sure to approach conclude to prior ranges.
The SEC’s lag to fall the Dragonchain case is one other instance of the shift in opposition to more collaborative and nuanced regulatory engagement with blockchain and cryptocurrency initiatives.
