The US Securities and Exchange Commission (SEC) intends to drop its lawsuit against Dragonchain concerning unregistered securities linked to the company's ICO. In a joint stipulation filed on April 24, the SEC cited the establishment of its Crypto Task Force and the development of a regulatory framework for crypto assets as reasons for the dismissal. The SEC initially filed suit against Dragonchain in August 2024, alleging that $16.5 million was raised through the offering of DRGN tokens, classifying them as unregistered securities. The SEC's claim stated that Dragonchain raised $14 million in a presale and ICO in late 2017 and that an additional $2.5 million was sold between 2019 and 2022. Following a settlement offer from Dragonchain, the lawsuit was paused, with further developments influenced by political changes in the US administration. Following news of the SEC's planned dismissal, the DRGN token surged 95%, although it remains significantly lower than its peak value in early 2018. This case is one among several that the SEC has abandoned recently, indicating a shift in its regulatory approach toward the crypto industry.

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