IMX SEC charges were dropped in 2025, providing a boost to the Web3 gaming token. Meanwhile, Bitcoin prices remain steady during the IMX rally as fresh developments in the crypto landscape emerge.

Immutable, the company behind the IMX token—designed to optimize NFT transactions on Ethereum—received positive news when the U.S. SEC decided not to pursue the charges that were anticipated in 2024.

The SEC commenced its inquiry into Immutable and the IMX token late last year but chose to withdraw the charges yesterday. In response, the IMX price saw a brief surge, although it has since stabilized, suggesting a potential opportunity for investors who believe it offers outsized value in the 2025 crypto market.

IMX SEC Charges: Overview

In November 2024, Immutable was sent a Wells Notice from the SEC, indicating that enforcement action was under consideration due to concerns about the nature of IMX sales and listings, specifically during private engagements.

The SEC argued that these transactions classified IMX as an unregistered security according to the Howey Test, a critical component of U.S. securities law. They contended that IMX was a security, suggesting that buyers expected to profit from efforts made by the project team.

Immutable responded to these claims by emphasizing that IMX serves as a utility token for transaction fee payments, allowing holders participation in governance within their gaming ecosystem.

In line with this defense, Immutable also critiqued the SEC’s approach, echoing sentiments from other firms such as Ripple stating that the SEC was regulating through overt enforcement.

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The absence of clear regulatory guidance or any proactive engagement with the Immutable team before issuing the Wells Notice has underpinned their stance.

SEC Drops Charges: Reasons

After four months, Immutable officially announced that the SEC has closed its investigation, choosing not to take any enforcement action against the Ethereum layer-2 platform. They labeled this development as a triumph for builders and creators advocating for genuine digital ownership.

What remains uncertain is the precise motivation prompting the SEC’s decision to drop the charges. Since Gary Gensler’s departure in January 2025, the agency appears to have softened its stance on crypto regulations, dismissing probes into numerous high-profile crypto companies.

This regulatory shift has been well-received, aligning with broader pro-crypto policies associated with the Trump administration. Prolonged legal disputes with the SEC, alongside robust political support for crypto, could catalyze increased opposition to the agency, contrasting the conduct seen during Gensler’s tenure.

IMX Stable, Yet Immutable Faces Legal Strains

While IMX initially surged following the announcement of the charges being dropped, the token has since cooled off, remaining within a bearish trend.

Although Bitcoin has gained momentum, which could benefit IMX prices, there is a looming risk. If sellers return forcefully, a breach below $0.45 could push IMX to new lows over the next two years.

Furthermore, the Rosen Law Firm is exploring a class-action lawsuit against Immutable, citing concerns regarding misleading information to investors during the token sale.

Conclusion

In light of these shifts and developments in the regulatory landscape, it remains crucial for stakeholders to stay updated on ongoing changes in both the SEC’s policies and the performance of tokens like IMX within the broader crypto ecosystem.