SEC Drops Cases Against Kraken, ConsenSys, Cumberland, Crypto.com
2min read The U.S. Securities and Exchange Commission (SEC) has formally terminated enforcement actions against three prominent crypto companies: Kraken, ConsenSys Software Inc., and Cumberland DRW LLC. This decision marks a significant shift in the SEC’s regulatory approach toward the crypto industry, potentially bringing more clarity and stability to the sector. The agency filed stipulations on March 27, 2025, to drop the cases “with prejudice,” meaning these decisions cannot be undone or refiled. The dismissal does not address the merits of the claims but is an exercise of the SEC’s discretion, aimed at reforming and renewing its regulatory approach to the crypto industry.
Industry leaders have long argued that regulatory uncertainty has been a major barrier to the institutional adoption of digital assets. Many companies have faced prolonged legal battles, which have hindered their ability to innovate and expand operations. Kraken, in a statement after the dismissal, described the SEC’s earlier actions as a “wasteful, politically motivated campaign.” The resolution removes “uncertainty” that had been choking innovation and investment in the space. Following the dismissal, Kraken disclosed plans to list its shares to go public, which could make it the second crypto firm to do so after coinbase. A public listing would not only provide Kraken with additional capital but also further legitimize the crypto industry in traditional financial markets. Analysts predict that if successful, this could encourage other major crypto firms to follow suit.
The SEC has also formally closed its case against the exchange Crypto.com, with no enforcement actions taken. Crypto.com confirmed that the SEC would take no enforcement action against the company. This move suggests a more collaborative approach under acting SEC Chairman Mark T. Uyeda. In a statement after the dismissal of civil enforcement action against Coinbase, Uyeda mentioned that these decisions were part of the agency’s “ongoing efforts” to “correct its course” and develop crypto policy in a “more transparent manner.” The SEC has formed a Crypto task Force and plans to host more roundtable discussions with crypto experts to improve engagement and enhance regulatory clarity. Commissioner Hester Peirce, head of the task force, welcomed this approach, although some critics remain skeptical about how much real change will occur without clear legislative action from Congress.
This shift in the SEC’s stance is a departure from the tactics under former Chairman Gary Gensler, who undertook aggressive enforcement actions against countless crypto firms. Crypto.com’s chief legal officer, Nick Lundgren, criticized the previous administration for its aggressive regulatory stance, arguing that it exceeded congressional authority. The cases that have been dropped mark a major retreat from some high-profile allegations. Kraken was accused of running an unregistered securities exchange, broker, dealer, and clearing agency. ConsenSys was accused of illegally selling securities via its MetaMask Staking service. Cumberland DRW, a Chicago-based trading firm, was sued for allegedly acting as an unregistered dealer connected with more than $2 billion in crypto assets.
While the SEC’s recent actions are clearly a victory for much of the crypto world, there are still uncertainties. The Tron and Binance lawsuits remain on hold. Additionally, the SEC noted that its dismissals are not “necessarily a reflection of the Commission’s position on any other case.” This suggests the agency could still pursue enforcement actions in other areas. Despite these uncertainties, the dismissal of these cases signals a potential shift in the SEC’s regulatory approach, bringing more clarity and stability to the crypto industry. This move is expected to encourage innovation and investment in the sector, as companies can now focus on growth and expansion without the looming threat of regulatory action.
Ask Aime: What does the SEC's termination of enforcement actions against Kraken, ConsenSys Software, and Cumberland DRW mean for the crypto industry?
