tl;dr
The U.S. SEC has dismissed enforcement actions against major crypto firms Kraken, ConsenSys, and Cumberland DRW LLC, along with Crypto.com. The dismissals are part of a broader pivot in U.S. crypto regulation. The SEC emphasized that these decisions do not reflect its position on other cases. The fi...
The U.S. SEC has dismissed enforcement actions against major crypto firms Kraken, ConsenSys, and Cumberland DRW LLC, along with Crypto.com. The dismissals are part of a broader pivot in U.S. crypto regulation. The SEC emphasized that these decisions do not reflect its position on other cases. The firms welcomed the resolution, with Kraken expressing relief and the potential for going public. This marks a shift from the previous administration's enforcement-focused approach, signaling a more engaged stance with the crypto industry under acting Chairman Uyeda.
The U.S. SEC on Thursday dismissed enforcement actions against three major crypto firms, filing joint stipulations to drop the cases with prejudice, making the decisions final and not subject to refile. Kraken, ConsenSys, and Cumberland DRW LLC all saw their respective lawsuits terminated simultaneously, marking the latest reversal in the agency's regulatory approach toward digital assets. The regulator has also officially closed its case against the exchange Crypto.com.
The dismissals form part of a broader pivot in U.S. crypto regulation under the Trump administration, following similar ends to cases against Coinbase, Robinhood, Uniswap Labs, and OpenSea. In a statement following the dismissal of civil enforcement action against Coinbase, acting SEC Chairman Mark T. Uyeda said these decisions were part of the agency's "ongoing efforts" to "rectify its approach” and develop crypto policy in a “more transparent manner." Notably, the SEC emphasized that these dismissals do not "necessarily reflect the Commission's position on any other case."
The decision ends a "wasteful, politically motivated campaign," Kraken said in a statement when the resolution for their case with the regulator arrived. Kraken further characterized the SEC's move as something that lifted "uncertainty" over what could have "stifled innovation and investment." The exchange provider later revealed its prospects of going public, potentially coming in as the second crypto firm to do so after Coinbase. The resolution ends a tumultuous period for the industry.
Each of the three companies had faced serious allegations under the prior Gensler regime. Kraken was charged in November 2023 with operating an unregistered securities exchange, broker, dealer, and clearing agency. ConsenSys faced accusations in June 2024 of unlawfully offering securities through its MetaMask Staking service. Cumberland DRW, a Chicago-based trading firm, was sued in October 2024 for allegedly acting as an unregistered dealer handling over $2 billion in crypto assets. Under acting Chairman Uyeda, the SEC has established a task force and actively engaged with the crypto industry, signaling a departure from the previous administration's enforcement-focused approach.