US SEC drops lawsuit against BitClout founder

The U.S. Securities and Exchange Commission (SEC) has dropped its lawsuit against Nader Al-Naji, founder of the decentralized social media platform BitClout, Cointelegraph reports. The move was formalized in a joint stipulation of dismissal filed with the U.S. District Court for the Southern District of New York. The SEC originally sued Al-Naji in 2024, alleging he had raised $257 million through the sale of BitClout's native token, BTCLT, while falsely claiming the funds would not be used to pay team member salaries. Cointelegraph noted that the SEC has been retracting its previously hardline stance against cryptocurrency firms under the second Trump administration.