The U.S. Securities and Exchange Commission (SEC) dismissed its civil enforcement actions against major crypto firms, including Kraken, Consensys, and Cumberland DRW LLC. This decision marks a notable shift in the SEC's stance, reflecting its intent to recalibrate its strategy towards crypto regulation.

Image Source: SEC

On March 27, 2025, the SEC filed joint stipulations to dismiss these cases with prejudice, meaning they cannot be refiled. The agency clarified that this move does not imply any judgment on the merits of the claims previously made against these companies, and said that this decision is aimed at facilitating ongoing efforts to develop a more transparent and effective regulatory environment for the crypto sector.

Dismissed Cases

Each of the firms involved faced serious allegations before the dismissal:

1. Kraken was accused in November 2023 of operating an unregistered securities exchange and violating multiple provisions of U.S. securities laws through its crypto trading services.

2. Consensys Software Inc. faced similar charges in June 2024, with claims that it unlawfully offered and sold securities via its MetaMask Staking service while acting as an unregistered broker.

3. Cumberland DRW LLC, a proprietary trading firm, was accused in October 2024 of allegedly functioning as an unregistered dealer in transactions exceeding $2 billion involving crypto assets classified as securities by the SEC.

These dismissals come amidst a backdrop of increasing scrutiny and enforcement actions within the cryptocurrency industry.

Crypto.com Investigation Closed

Image Source: Kris Marszalek

The SEC has also closed its investigation into Crypto.com without taking any enforcement action. This closure was confirmed by CEO Kris Marszalek, who expressed relief that the current SEC leadership decided to end the investigation that had lingered for months. Kris criticized previous SEC practices under former leadership, suggesting that they aimed to stifle innovation within the crypto space.

Implications for Future Regulation

The SEC's recent actions signal a willingness to engage with industry stakeholders and develop clear guidelines for cryptocurrency operations. Acting Chairman Mark T. Uyeda stated that the commission's past reliance on enforcement actions without public engagement was not sustainable. The formation of a dedicated Crypto Task Force aims to foster dialogue and create comprehensive regulations tailored to the unique challenges posed by digital assets.