Y Combinator co-founder Paul Graham criticized former SEC Chair Gary Gensler for leaving crypto in legal ambiguity, saying legitimate firms were stonewalled or sued while frauds thrived. Incoming SEC head Paul Atkins has launched "Project Crypto," arguing most tokens are not securities and dismissing or settling major cases against Coinbase, Kraken and Ripple — a regulatory U-turn that has drawn Democratic pushback.

Paul Graham says Gensler deliberately left crypto in legal ambiguity and legitimate firms were stonewalled or sued. New SEC head Paul Atkins launched "Project Crypto," argues most tokens are not securities, and has dismissed or settled major cases against Coinbase, Kraken and Ripple; the change has provoked political pushback. These are concrete regulatory actions and statements that can affect market perception of regulatory risk.