On February 2, the SEC dismissed administrative proceedings against a Wyoming-based digital assets company concerning the registration statements for two digital assets. The case stemmed from filings made in September 2021, when the respondent submitted Form 10 and Form S-1 to register two classes of digital assets — a stable token and a governance token. As previously covered by InfoBytes, the SEC instituted proceedings in November 2022 to determine whether to suspend the registration, citing concerns about incomplete disclosures and misleading statements in the respondent’s filings. The respondent later requested to withdraw both registration statements, acknowledging that neither had become effective, and the SEC initially denied the withdrawal of Form S-1 and required approval for the withdrawal of Form 10.

However, the SEC’s dismissal order noted that recent developments in digital asset regulation — including the enactment of the GENIUS Act (covered here), recent White House actions on digital assets (covered here and here), and agency initiatives such as Project Crypto (covered here) — prompted the agency to reconsider and, in so doing, grant the company’s request to withdraw Form S-1. Further, the SEC granted the Form 10 withdrawal request, finding that the respondent’s request to withdraw the not-yet-effective form was effective when filed. With both registration statements withdrawn, the SEC dismissed the proceedings as moot, allowing the respondent to reevaluate its approach given recent developments in regulatory standards for digital assets. The SEC emphasized that this order does not express any view on whether the digital tokens in question are securities.