SEC Officially Drops Consensys, Kraken, and Cumberland DRW Cases
The United States Securities and Exchange Commission (SEC) officially dropped its cases against Kraken, Consensys, and Cumberland DRW in a series of joint stipulations this week, the federal regulator announced Thursday.
SEC Ends Legal Actions Against Crypto Firms
According to three litigation releases posted on the agency’s website on March 27, the three crypto firms will no longer face legal action from the regulator in what members of the cryptocurrency community feel signals a continued shift in its regulatory practices. “The Commission’s decision to exercise its discretion and dismiss this pending enforcement action rests on its judgment that the dismissal will facilitate the Commission’s ongoing efforts to reform and renew its regulatory approach to the crypto industry, not on any assessment of the merits of the claims alleged in the action,” the SEC said in a statement. “Furthermore, as stated in the joint stipulation, ‘the Commission’s decision to seek dismissal of this Litigation does not necessarily reflect the Commission’s position on any other case,’” the statement continued.
Political Changes Influence SEC’s Approach
News of the litigation releases comes shortly after reports emerged that the federal regulator would be dropping a number of its cases against key players in the crypto industry. Kraken announced on March 3 that the SEC has agreed “in principle” to drop its case against it after the agency sued the crypto firm back in November 2023 for violating U.S. securities laws.
“Glad to finally close this chapter,” Kraken Co-CEO Dave Ripley wrote in an X post late Thursday. “Back to what really matters, building the future of finance at @krakenfx.” The SEC’s approach to crypto regulation has shifted in recent months in wake of the election of U.S. President Donald Trump. Trump has vowed to enact crypto-friendly policies while in the Oval Office, though has been met with both praise and criticism from the sector overall. It is unclear whether the SEC will drop additional enforcement actions against other firms in the digital asset space.
SEC Faces Ongoing Trust Challenges
Legal pressure may have eased, but mistrust still runs deep between regulators and crypto firms. Dropping these cases might mark the beginning of a shift, but it won’t erase the memory of earlier clashes. Restoring faith—on both sides—requires more than dismissals. It calls for transparency, consistency, and a clear path forward. If that path leads to real dialogue and sensible rules, this moment may matter more than it seems.
