SEC Drops Enforcement Actions Against Kraken, Consensys, Cumberland

SEC Dismisses Enforcement Actions Against Kraken, ConsenSys, Cumberland DRW, and Crypto.com in Major Regulatory Shift

  • SEC dismissed enforcement actions against Kraken, ConsenSys, Cumberland DRW LLC, and crypto.com with prejudice, preventing future refiling of these cases.
  • The dismissals represent a significant shift in U.S. crypto regulation under the Trump administration, following similar case terminations against Coinbase, Robinhood, Uniswap Labs, and OpenSea.
  • Acting SEC Chairman Mark T. Uyeda has established a crypto task force and is actively engaging with industry players, signaling a departure from the previous enforcement-focused regulatory approach.

The U.S. Securities and Exchange Commission (SEC) has terminated enforcement actions against four major cryptocurrency firms on Thursday, filing joint stipulations to dismiss cases with prejudice. Kraken, ConsenSys, Cumberland DRW LLC, and Crypto.com all saw their respective legal challenges concluded simultaneously, marking a significant pivot in the regulatory landscape for digital assets.

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These dismissals represent the latest in a series of regulatory reversals under the Trump administration. The SEC has also recently ended similar enforcement actions against Coinbase, Robinhood, Uniswap Labs, and OpenSea, signaling a comprehensive shift in the agency’s approach to cryptocurrency regulation.

In a statement addressing the Coinbase case dismissal, acting SEC Chairman Mark T. Uyeda explained that these decisions form part of the agency’s “ongoing efforts” to “rectify its approach” and develop cryptocurrency policy in a “more transparent manner.” However, the SEC emphasized that these specific dismissals do not “necessarily reflect the Commission’s position on any other case.”

Kraken characterized the SEC’s decision as ending a “wasteful, politically motivated campaign” in their statement. The exchange further noted that the resolution lifted “uncertainty” that could have “stifled innovation and investment.” Following this legal victory, Kraken has revealed plans to potentially go public, which would make it the second major cryptocurrency firm to do so after Coinbase.

Each of the dismissed cases involved serious allegations under former SEC Chair Gary Gensler’s administration:

Kraken faced charges in November 2023 for allegedly operating an unregistered securities exchange, broker, dealer, and clearing agency.

ConsenSys was accused in June 2024 of unlawfully offering securities through its MetaMask Staking service.

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Cumberland DRW LLC, a Chicago-based trading firm, was sued in October 2024 for allegedly functioning as an unregistered dealer handling over $2 billion in cryptocurrency assets.

Under Uyeda’s leadership, the SEC has established a task force and begun engaging with the crypto industry, marking a clear departure from the previous administration’s enforcement-focused regulatory strategy. This collaborative approach suggests a potential new chapter in the relationship between U.S. regulators and cryptocurrency businesses.

The dismissals, filed with prejudice, make these decisions final and prevent the SEC from refiling these specific cases in the future, providing regulatory certainty for the affected companies and potentially the broader cryptocurrency sector.

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