- The SEC dismissed enforcement actions against Kraken, ConsenSys, and Cumberland DRW with prejudice.
- Crypto.com also confirmed the SEC dropped its investigation without penalties.
The U.S. Securities and Exchange Commission has officially dismissed enforcement actions against Kraken, ConsenSys, and Cumberland DRW LLC. The agency filed joint ASZa stipulations to drop the cases with prejudice on March 27. This means the cases cannot be refiled, marking a significant regulatory shift.
The SEC cited its decision as part of a broader strategy to revise its crypto policies. The agency stated the dismissals do not reflect the merits of its claims. Instead, they aim to facilitate new approaches to crypto regulation. Acting SEC Chairman Mark T. Uyeda emphasized that this move does not impact other ongoing cases.
Regulatory Shift Under New Leadership
The dismissals follow similar dropped cases against Coinbase, Robinhood, OpenSea, and Uniswap Labs. The SEC’s approach under the previous administration was widely criticized as hostile toward crypto firms.
Kraken was charged in November 2023 with operating an unregistered exchange, broker, dealer, and clearing agency. In June 2024, the SEC accused ConsenSys of offering and selling unregistered securities through MetaMask Staking. Cumberland DRW was sued in October 2024 for acting as an unregistered dealer, and the SEC flagged over $2 billion in crypto transactions.
Crypto.com Case Also Dropped
Crypto.com also announced that the SEC dropped its investigation without enforcement action or settlement. The company had previously received a Wells Notice, signaling potential legal action. Chief Legal Officer Nick Lundgren criticized the past SEC administration for overstepping its regulatory powers.
Ripple CEO Brad Garlinghouse recently confirmed that the SEC abandoned its appeal in the long-running Ripple lawsuit. However, XRP holders, known as the “XRP Army,” have expressed frustration over delays in formally closing the case.
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