In a sweeping pivot away from its enforcement-heavy stance, the U.S. Securities and Exchange Commission (SEC) has officially dropped multiple high-profile cases against crypto firms.
The dismissals, which include actions against Kraken, ConsenSys, Cumberland DRW, and Crypto.com, signal a new chapter in the agency’s approach to digital asset regulation.
The regulatory U-turn comes as acting SEC Chairman Mark T. Uyeda steers the commission toward a more transparent and collaborative framework for engaging with the crypto industry.
While the SEC maintains that these decisions do not set a precedent for other cases, they nonetheless mark a significant shift from the aggressive tactics employed under former Chairman Gary Gensler.
Kraken, ConsenSys, and Cumberland DRW Walk Free
On Thursday, the SEC filed joint stipulations dismissing enforcement actions against Kraken, ConsenSys, and Cumberland DRW with prejudice—ensuring the cases cannot be refiled. Each of these firms had been embroiled in lawsuits alleging violations of securities laws.
Kraken had been charged in November 2023 with operating as an unregistered securities exchange, broker, dealer, and clearing agency. The exchange responded to the SEC’s reversal by calling the case a "wasteful, politically motivated campaign" that had threatened to stifle innovation. The dismissal clears the path for Kraken’s potential IPO, positioning it as the second major crypto firm to go public after Coinbase.
ConsenSys, the Ethereum-focused blockchain software company, had faced accusations of unlawfully offering securities through its MetaMask Staking service in June 2024. Cumberland DRW, a Chicago-based trading firm, had been sued in October 2024 for allegedly acting as an unregistered dealer while handling over $2 billion in crypto assets.
With these cases now closed, industry leaders see the move as a long-overdue recalibration of regulatory priorities. The SEC’s newly established Crypto Task Force, led by Commissioner Hester Peirce, is expected to further redefine the commission’s approach to digital assets.
CryptoСom Investigation Ends Without Charges
Another major win for the crypto industry came with the SEC’s decision to close its investigation into CryptoСom. The probe, which began with a Wells notice issued in August 2023, ended with no charges filed against the exchange.
Kris Marszalek, CryptoСom’s CEO, took to social media to celebrate the outcome, accusing the SEC’s prior leadership of attempting to undermine the industry by restricting access to banking, auditors, and investors. "The fact that we not only persevered but became stronger is a testament to our vision and the community supporting it," Marszalek stated.
CryptoСom had previously sued the SEC in October 2023, alleging regulatory overreach and a "misguided" approach to crypto enforcement. With the case now officially closed, the exchange is free to pursue its expansion plans, including a recently announced partnership with Trump Media to launch “Made in America”-themed exchange-traded funds.
Ripple Settlement Brings an End to Multi-Year Legal Battle
Ripple Labs has also secured a final resolution to its protracted legal battle with the SEC. The commission, which first sued Ripple in December 2020 over allegations of unregistered securities sales involving XRP, has officially dropped its appeal.
As part of the settlement, Ripple has agreed to pay $50 million—significantly less than the $125 million initially imposed by the U.S. District Court for the Southern District of New York. Ripple’s chief legal officer, Stuart Alderoty, confirmed that this marks the definitive end of the case, pending final procedural votes and court approvals.
A New Regulatory Landscape for Crypto?
The recent wave of case dismissals is part of a broader regulatory transformation under acting Chairman Uyeda. Since taking over in January 2025, Uyeda has scrapped controversial rules that treated crypto assets as liabilities for financial firms and has taken a more engagement-driven approach toward policy development.
Paul Atkins, Trump’s nominee to lead the SEC permanently, is expected to continue this shift if confirmed. Meanwhile, industry stakeholders remain cautiously optimistic, hoping that the SEC’s newfound stance signals the beginning of a more constructive regulatory environment for digital assets.
With enforcement actions rolled back, crypto firms are now looking ahead, focusing on innovation and compliance under a potentially more predictable regulatory framework. The coming months will be crucial in determining whether this shift is a temporary recalibration or a long-term strategic pivot for the SEC.