The Securities and Exchange Commission on Thursday formally dismissed civil enforcement actions against three prominent cryptocurrency companies—Kraken, ConsenSys, and Cumberland DRW LLC—marking a significant change in federal regulatory policy. The agency filed joint stipulations to dismiss the lawsuits with prejudice, rendering the decisions final and not subject to refile.
The move ends months of legal scrutiny for the firms and adds to a growing list of dismissed crypto cases, including those involving Coinbase, Robinhood, Uniswap Labs, and OpenSea. According to SEC filings, the agency’s decision to end these proceedings was not based on the merits of the claims but was instead driven by internal priorities to “reform and renew” its regulatory approach to the crypto sector.
Litigation releases published March 27 confirmed the formal dismissal of cases against all three firms. Kraken, the parent companies Payward Inc. and Payward Ventures Inc., had been sued in November 2023 for allegedly operating as an unregistered securities exchange, broker, dealer, and clearing agency.
ConsenSys, best known for its MetaMask platform, was charged in June 2024 with purportedly offering unregistered securities via its staking service. Cumberland DRW, a Chicago-based trading firm, was accused in October 2024 of acting as an unregistered dealer managing over $2 billion in digital assets.
Each joint stipulation stated that the decision to dismiss
“does not necessarily reflect the Commission’s position on any other case.”
The language was consistent across all three filings, indicating a coordinated policy adjustment rather than case-specific considerations.
Kraken described the resolution as the end of a “wasteful, politically motivated campaign,” adding that the action lifted a cloud of “uncertainty” that could have “stifled innovation and investment.” The company has since stated it may pursue a public listing, potentially becoming the second major crypto firm to do so after Coinbase.
Under acting SEC Chairman Mark T. Uyeda, the agency has moved away from the aggressive enforcement strategy that characterized the tenure of his predecessor. Uyeda has called the latest dismissals part of an effort to “rectify” the Commission’s approach and implement crypto policy in a “more transparent manner.”
The SEC’s Crypto Task Force, led by Commissioner Hester Peirce, has scheduled four new roundtables between April and June to explore regulatory challenges in the sector. Peirce stated the events would allow the agency to “hear a lively discussion among experts” as it considers new frameworks.
The SEC has also dropped its investigation into Ethereum-based Web3 gaming firm Immutable, which had been under review since October 2024.
