SEC Withdraws Lawsuits Against Kraken, ConsenSys, and Cumberland

The U.S. Securities and Exchange Commission (SEC) has withdrawn lawsuits against cryptocurrency firms Kraken, ConsenSys, and Cumberland.

Court documents for the dismissal were filed on March 27. The cases were closed with “prejudice,” preventing them from being refiled.

The SEC noted that the decision is part of a broader reassessment of its approach to regulating the crypto industry. The closure of these cases does not reflect on their merits, according to the statement.

Kraken came under scrutiny in November 2023, when the Commission 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. The lawsuit alleged that since October 2020, the firm had been “operating as an unregistered securities broker,” and since January 2023, it had been selling them through MetaMask Staking.

The trading firm Cumberland DRW faced allegations in October 2024 of unregistered trading of assets that the SEC deemed securities.

Earlier this year, the regulator halted investigations against Coinbase, Robinhood, Ripple, ConsenSys, and Uniswap.