The U.S. Securities and Exchange Commission (SEC) officially dismissed its civil enforcement actions against Kraken, Consensys, and Cumberland DRW in separate announcements late Thursday.
The cases were dismissed with prejudice, meaning they cannot be revived in court. The SEC stated that the decision to drop these cases was part of its broader efforts to reform and update its regulatory approach to the cryptocurrency industry. However, the agency clarified that the dismissals were not an assessment of the merits of the cases involved.
The SEC emphasized that the move was made in the interest of facilitating future regulatory efforts and did not reflect the Commission’s stance on other ongoing cases.
Kraken’s Case Concludes
Kraken, the crypto exchange, welcomed the dismissal, which follows a March 3 agreement to drop the lawsuit. Kraken’s legal battle, which began in November 2023, accused the exchange of operating as an unregistered online trading platform and mishandling customer funds. Kraken confirmed that no penalties were paid, nor was its business model altered. “Glad to finally close this chapter,” said Kraken co-CEO Dave Ripley, who expressed relief over the end of what he described as a “wasteful, politically motivated campaign.”
Consensys and MetaMask Lawsuit
Similarly, Consensys, the developer behind the MetaMask web3 wallet, saw its lawsuit dismissed after the SEC agreed in principle to drop the case on February 27. The SEC had filed the lawsuit in June 2024, alleging that Consensys violated U.S. securities law through its MetaMask staking service. Joseph Lubin, founder of Consensys, expressed satisfaction with the outcome, stating the company had been committed to fighting the suit until its resolution.
Cumberland DRW Case Settled
The SEC also ended its case against Cumberland DRW, a crypto trading firm, which was initially sued in October 2024 for allegedly acting as an unregistered dealer while trading $2 billion in crypto. Cumberland signed an agreement with the SEC on March 4 to settle the matter, stating its commitment to transparency and its willingness to engage with the SEC to ensure regulatory clarity and technological advancement in the future.
Editorial Team
Reporter at Coindoo
Source: https://coindoo.com/sec-drops-cases-against-kraken-consensys-and-cumberland-drw-clearing-path-for-regulatory-reform/