The U.S. Securities and Exchange Commission (SEC) has officially dismissed civil lawsuits against several major crypto companies. The cases against Crypto.com, Kraken, Consensys, Cumberland DRW, and others have all been closed "with prejudice", according to a statement released by the SEC on March 27. This legal term means that the cases cannot be reopened in the future.
Crypto.com Avoids Prosecution Entirely
Crypto.com announced that the SEC has fully closed its investigation without issuing any fines or requiring a settlement.
According to the company's Chief Legal Officer Nick Lundgren, the investigation began under the SEC’s previous leadership and involved what he described as an attempt to "expand its authority beyond what is provided by law."
In August 2023, Crypto.com received a Wells Notice, a formal notification of potential enforcement action. In response, the company filed a counterclaim against the SEC.
Crypto.com emphasized its commitment to compliance and transparency, and expressed hope for constructive engagement with the SEC under its current leadership.
Kraken Case Closed Without Staking Penalties
Another case closed by the SEC involved crypto exchange Kraken. The agency had accused Kraken of unlawfully offering securities through its staking program, which allowed users to earn rewards by locking their crypto assets on the platform.
The SEC claimed that the staking service fell under securities laws. However, on March 27, both parties reached a settlement agreement to close the case, and no fines were imposed.
Consensys Case Also Dropped
On the same day, the SEC also dismissed its case against Consensys Software Inc.
In April 2024, Consensys had received a Wells Notice, with the SEC reportedly arguing that Ethereum (ETH) was a security and targeting the company’s MetaMask wallet.
Consensys has consistently argued that it does not operate as a broker, and that MetaMask is merely an interface — it does not hold user assets or execute transactions.
Cumberland and $2 Billion in Transactions
The SEC also dropped its case against Cumberland DRW LLC, which it had previously accused of operating as an unregistered dealer. According to earlier SEC claims, Cumberland had processed over $2 billion in transactions involving assets classified as securities.
On March 27, the SEC confirmed that it had entered into a dismissal agreement with prejudice, officially closing the case.
SEC Retreats from Broad Enforcement Push
These dismissals are part of a broader regulatory shift. Over the past month, the SEC has closed investigations into multiple major players, including:
Just last week, Ripple CEO Brad Garlinghouse announced that the SEC had also dropped its appeal in the agency’s long-running case against Ripple, which had dragged on for over four years.
These developments may signal a more moderated approach to crypto regulation, especially as Congress continues to consider new legal frameworks for digital assets.
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