Ian Balina, CEO of Token Metrics and a prominent YouTuber, has suggested that the US Securities and Exchange Commission (SEC) will no longer continue litigation against him. The case, filed in 2022, accused Balina of promoting unregistered securities, specifically Sparkster (SPRK) tokens, in 2018. Balina claims that the SEC has indicated its intention to recommend dismissal of the case.
Balina attributes the SEC’s change of course to a new political climate favorable to cryptocurrencies after the departure of Gary Gensler from the SEC and the subsequent appointment of acting SEC Chair Mark Uyeda by US President Donald Trump. Balina posits the new administration to be “pro-crypto” and believes the era of crypto regulation through enforcement has come to an end.
The SEC had accused Balina of not disclosing to his social media followers his agreement to receive a significant bonus from Sparkster on his $5 million investment in the initial coin offering (ICO). A 2024 court ruling declared SPRK tokens as securities under the SEC’s jurisdiction, which Balina’s legal team had intended to appeal.
The SEC’s potential dismissal of the case aligns with a broader trend of the commission moving to drop cases against various crypto-related companies after Gensler’s departure. Investigations into Robinhood Crypto, Gemini, Uniswap, and OpenSea have been halted, and cases against Coinbase, Consensys, and Kraken among others have reportedly been dropped.
However, allegations of the crypto industry using financial influence to court the Trump administration’s favor have been raised. The recent crypto summit hosted by the president, attended by many “pro-crypto” industry leaders, has further fueled these speculations.