The U.S. Securities and Exchange Commission (SEC) has officially dismissed its case against Ian Balina, founder of the AI-driven investment platform Token Metrics, marking a significant shift in the agency’s approach to crypto enforcement. The SEC announced this move on May 1st, stating that it believed dismissal was appropriate and requesting no costs or fees be imposed on either party. While the exact reasons for withdrawal remain undisclosed, the court filing emphasizes this doesn’t reflect their position on any other cases. Balina had previously hinted at a potential outcome weeks prior, declaring it a victory for himself and the broader crypto community. This dismissal aligns with the SEC’s recent actions against similar cases involving companies like Hex founder Richard Heart, suggesting a potential trend of a more lenient approach in the crypto space. The SEC’s accusations against Balina stemmed from his alleged promotion and sale of SPRK tokens related to the Sparkster project. In 2018, he allegedly received a significant bonus for promoting and reselling approximately $5 million worth of tokens without proper registration or disclosure. This case involved a Telegram investing pool with over 68 participants, and in May 2024, a court ruled that SPRK tokens were securities under the Howey Test, and Balina acted as an underwriter. Further emphasizing the shift, both the SEC dropping the case against Hex founder Richard Heart on April 23rd and the fact that Sparkster settled with the SEC in 2022 for over $35 million to investors impacted by the token offering, showcase this potential change in enforcement strategy.