Dragonchain (DRGN) Price Surges After SEC Drops Its Lawsuit

The crypto industry keeps on changing, and the latest news is that the SEC has decided to drop its lawsuit against Dragonchain.

The crypto industry is known for its rapid shifts, and a recent development has seen the SEC drop its lawsuit against Dragonchain.

On April 24, both parties agreed to dismiss the case with prejudice, indicating it’s closed permanently. A report by Blockworks sheds light on this decision, which the SEC attributed to its newly formed crypto task force (CTF) and the wider changes in the digital asset landscape.

For Dragonchain and fans of the DRGN token, this brings a breath of fresh air after years of legal tension.

How Dragonchain’s Token Sale Led to SEC Lawsuit

The issue started with Dragonchain’s token sale in 2017. The SEC claimed that when Dragonchain sold DRGN tokens during its ICO, it should have registered them under securities laws. At the time, Dragonchain managed to raise around $14 million, and later collected another $2.5 million between 2019 and 2022. The regulators viewed these DRGN sales as “investment contracts.”

For years, this kept Dragonchain involved in legal troubles, part of a broader crackdown during Gary Gensler’s tenure at the SEC. But the official lawsuit, filed in August 2022, was for unregistered token sale and accused Dragonchain and its founder, Joseph Roets, of illegally raising $16.5 million.

Crypto Task Force and Dragonchain’s Meeting

A major turning point came as the U.S. government began shifting its stance on crypto. After President Trump’s return to office, the SEC assembled a CTF to reassess how digital assets should be handled.

In March, Dragonchain’s team, headed by founder Joe Roets, met with the task force to discuss the technology behind the DRGN token. They highlighted how it isn’t just about financial speculation but also transparency, automation, and managing identity.

After engaging with Dragonchain and considering the broader changes in the digital asset landscape, the SEC ultimately decided to drop the lawsuit.

Dragonchain Price Surges 100%

The news of the lawsuit dismissal had an immediate impact on the market. The Dragonchain price reacted swiftly, and the DRGN shot up almost 100% within a day, currently trading at $0.07704.

Chart 1: DRGN/USDT live price, published on TradingView, April 25, 2025.

Although it’s still a long way from its 2018 all-time high, the sudden DRGN price surge is a spark of hope for those who have supported the project for a long time. The Dragonchain token price rise highlights how legal uncertainty can hold back a project, and how quickly things can change.

SEC Drops Several Cases

It’s not just Dragonchain that’s seeing the effects. Over the last few months, the SEC has been stepping back from several high-profile crypto cases. They’ve dropped suits against Coinbase, Ripple, Gemini, and even HEX founder Richard Heart. In each instance, the SEC cited the need for a new approach in light of government policy changes.

It’s clear that the SEC’s crypto task force isn’t just for show; it’s already putting those recommendations into practice.