- 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. On March 27, the agency filed joint ASA stipulations for dismissal with prejudice regarding the cases. This means that the case cannot be refilled, which indicates a major regulatory shift.
The SEC explained that the termination is part of a broader policy shift under its overall crypto strategy. The agency argued, however, that such dismissals would not be based on the merits of the claims but rather on facilitating other regulatory approaches to crypto. According to Acting SEC Chairman Mark T. Uyeda, such a move will not affect other cases under consideration.
It is these dismissals that emulate other cases that were dropped from being prosecuted against Coinbase, Robinhood, OpenSea, and Uniswap Labs. Many criticized the previous SEC administration for its relentless stance against crypto agriculture.
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. The SEC sued Cumberland DRW in October 2024 for acting as an unregistered dealer and flagged over $2 billion in crypto transactions.
Crypto.com Case Also Dropped
Crypto.com also revealed that the SEC dropped its investigation and took no action. The company had first received a Wells Notice. Chief Legal Officer Nick Lundgren criticized the past SEC administration for what he calls overreach of its regulatory authority.
Ripple CEO Brad Garlinghouse has revealed that the SEC has ditched its appeal in the age-old Ripple case. Meanwhile, the XRP holders, dubbed the “XRP Army,” have complained about the delay in formally calling the case closed.
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