The US Securities and Exchange Commission (SEC) is ready to withdraw its lawsuit against the Dragonchain crypto company, which was previously accused of conducting an unregistered ICO.

According to the agreement submitted by the SEC and Dragonchain to the Federal Court of Seattle, the regulator considers it appropriate to close the case without preserving the plaintiff’s right to file on the same basis. The department explained the decision by the fact that the SEC target group for cryptocurrencies has already begun the development of a regulatory framework for crypto assets. This working group was formed in January, the day after Donald Trump returned to the White House.

Earlier, the SEC sued Dragonchain and its founder Dragonchain Joseph Roets, saying that they attracted $ 16.5 million through the sale of DRGN tokens, which, according to the agency, are unregistered securities. According to SEC, during the pre -sale in August 2017 and the initial supply of coins (ICO), conducted in October and November of the same year, the Dragonchain project raised $ 14 million from 2019 to 2022, the company sold DRGN tokens another $ 2.5 million, and spent the proceeds on commercial expenses and development.

The lawsuit was suspended in October after the Dragonchain leadership proposed SEC to resolve claims. In January, the suspension of the lawsuit was extended after the signing by US President Donald Trump on the decree on the development of the crypto industry. SEC reported that on March 24, her target group met with representatives of Dragonchain to discuss the approach of the department to regulate cryptocurrencies.

Over the last day, the DRGN token jumped 95%, to $ 0.0907. The daily trading volume of coins increased by 3500% to $ 438 820, and the DRGN market capitalization increased to $ 28.8 million.

Earlier, the SEC rejected the claims against Coinbase and Kraken cryptocurrency exchanges, and also stopped the investigation against the Opensea platform and the developer of the Web3 Immutable Games. They were also accused of violating the laws on securities.