SEC Drops Lawsuits Against Kraken, ConsenSys, and Cumberland Amid Regulatory Shift

The U.S. Securities and Exchange Commission (SEC) has decided to drop its lawsuits against cryptocurrency firms Kraken, ConsenSys, and Cumberland.

On March 27, documents for the dismissal of the cases were submitted, which have been closed due to «bias,» making it impossible for the claims to be revived.

The SEC noted that this decision is part of a reevaluation of its overall approach to regulating the cryptocurrency industry. The closure of the cases does not imply any legitimacy, according to their statement.

Kraken faced allegations in November 2023, when the SEC accused the exchange of offering unregistered securities in the form of digital tokens on its platform.

In June 2024, the SEC filed a lawsuit against ConsenSys, claiming that since October 2020, the firm had been operating as an unregistered broker of securities, and since January 2023, had been selling them through MetaMask Staking.

The trading firm Cumberland DRW came under scrutiny in October 2024 due to allegations of trading assets that the SEC classified as securities without proper registration.

As a reminder, since the beginning of the year, the regulator has closed investigations against Coinbase, Robinhood, Ripple, ConsenSys, and Uniswap.