The US Securities and Exchange Commission (SEC) has dropped its civil enforcement actions against several major crypto firms, including Kraken, Consensys, and Cumberland DRW. The decision, announced on March 27, 2025, signals a potential shift in the regulatory agency’s approach to the cryptocurrency industry.

The SEC’s joint stipulations with Payward, Inc. (Kraken), Consensys Software Inc., and Cumberland DRW LLC confirm the cases are dismissed with prejudice, meaning they cannot be refiled. The agency clarified that the dismissals are not a judgment on the merits of the claims but are part of broader efforts to “reform and renew” its regulatory framework for crypto.

“The Commission’s decision to seek dismissal of this litigation does not necessarily reflect the Commission’s position on any other case,” the SEC stated in its filings.

While the SEC has been aggressive in its enforcement against crypto companies in the past, this wave of dismissals suggests that the agency may be re-evaluating its tactics. Market participants have long criticized the SEC’s regulatory approach, accusing it of stifling innovation through unclear guidelines and enforcement-first strategies.‍

Crypto Industry Responds

The crypto industry has welcomed the SEC’s decision, with many viewing it as an overdue course correction. The regulatory crackdown under the previous administration led to widespread uncertainty, prompting lawsuits, market exits, and frustration among crypto firms.

Crypto.com CEO Kris took to social media to announce that the SEC’s investigation into the company had also been closed with no enforcement action. He criticized the previous administration’s handling of crypto regulation, arguing that it was a calculated effort to stifle the industry by restricting access to banking, auditors, and investors.

Nick Lundgren, Crypto.com’s Chief Legal Officer, echoed these sentiments. “Under the previous administration, the SEC weaponized and attempted to expand its congressionally granted power in order to harm an industry that its former chair disfavored. It is unfortunate that we were forced to endure this years-long investigation and file our own suit against the SEC to protect the rule of law.”

Lundgren also expressed optimism about working with the incoming SEC Chair, David Atkins, and emphasized the industry’s longstanding desire for clear legislation and regulatory rulemaking.

The SEC’s dismissals do not necessarily indicate a hands-off approach to crypto moving forward, but they do suggest a shift in regulatory tone. With the upcoming leadership transition at the Commission, crypto firms are hopeful that future policies will focus on clarity and constructive engagement rather than punitive enforcement actions.