U.S. SEC Drops Lawsuits Against Kraken, Consensys, and Cumberland

The U.S. Securities and Exchange Commission (SEC) has officially dismissed its lawsuits against three major crypto firms: Kraken, Consensys, and Cumberland DRW. 

This unexpected decision, confirmed on Thursday, 2025, marks a significant departure from the SEC’s previous enforcement-heavy approach toward digital assets.

🚨 Update: The SEC has just terminated its legal actions against Kraken, Consensys, and Cumberland, as part of a broader initiative to revise and modernize its regulatory framework for the crypto industry. 🔥 pic.twitter.com/EjCH8hKZlL

— Crypto Jessica (@CryptoJessXBT) March 28, 2025

The dismissals come with prejudice, meaning the SEC cannot refile these cases in the future. 

“The dismissal will facilitate the Commission’s ongoing efforts to reform and renew its regulatory approach to the crypto industry,” the SEC stated in its litigation releases. “Not on any assessment of the merits of the claims alleged in the action.”

Notably, there were no settlements or financial penalties involved, with both the SEC and the companies agreeing to bear their own legal costs. 

This development follows the SEC’s series of case withdrawals, including lawsuits against Coinbase and investigations into OpenSea, Robinhood, and Uniswap. 

SEC Signals Regulatory Shift: From Lawsuits to Clear Crypto Rules

The U.S. Securities and Exchange Commission (SEC) is shifting its approach to cryptocurrency regulation, moving away from aggressive enforcement actions toward a more structured framework.

Under Acting Chairperson Mark T. Uyeda, the SEC has launched a Crypto Task Force to enhance the oversight of digital asset transactions and ensure they align with traditional securities reporting standards.

Commissioner Hester Peirce, a vocal advocate for clear regulations, is leading this effort, emphasizing the need for well-defined guidelines rather than regulation through enforcement.

The task force has announced a series of roundtable discussions between April and June, covering topics such as crypto trading regulations, custody solutions, tokenization, and decentralized finance (DeFi).

Its first meeting, last week, at SEC headquarters in Washington, D.C., brought together industry experts and securities lawyers. 

In the roundtable discussion, Miles Jennings, General Counsel for a16z Crypto, criticized the SEC’s past approach, arguing that it failed to enhance investor protection, capital formation, or market efficiency. 

Peirce echoed this sentiment, calling the shift a “new beginning” for the SEC’s engagement with digital assets.

Meanwhile, Paul Atkins, a former SEC commissioner and known supporter of crypto-friendly policies, is set for his Senate confirmation hearing as the potential new SEC Chair. 

If confirmed, his leadership could further accelerate efforts to create a balanced regulatory framework.

Crypto Industry Welcomes SEC’s Shift Toward Regulatory Clarity

The crypto community has largely welcomed the SEC’s change in direction. Kraken, one of the firms cleared of regulatory scrutiny, expressed relief, calling the SEC’s prior actions a “wasteful, politically motivated campaign” that had stifled innovation. 

The exchange also hinted at ambitions to go public, potentially becoming the second crypto company to list on U.S. stock exchanges after Coinbase. 

With President Donald Trump pledging to position the U.S. as a global leader in cryptocurrency and artificial intelligence, this regulatory pivot may mark the beginning of a new era for the industry. 

The SEC’s reassessment of past litigations and its focus on creating clear, comprehensive regulations suggest a more constructive relationship with the crypto sector, fostering an environment conducive to innovation and growth.