The U.S. Securities and Exchange Commission (SEC) has officially dismissed civil enforcement actions against several major cryptocurrency firms, including Kraken, Consensys, and Cumberland. The dismissals were filed with prejudice, indicating that the decisions are final and cannot be refiled. Kraken faced charges for operating an unregistered securities exchange, Consensys was accused of unlawful offerings through its MetaMask Staking service, and Cumberland was alleged to have handled over $2 billion in crypto assets without proper registration. The SEC has also closed its investigation into Crypto.com without pursuing any enforcement actions. This decision follows Crypto.com's receipt of a Wells notice in October of the previous year, signaling potential charges, and the company's subsequent lawsuit against the SEC in December. Crypto.com's CEO Kris Marszalek called the closure a win for the crypto industry after years of regulatory pressure. These actions are part of a broader shift in the SEC's regulatory approach toward the cryptocurrency industry. Kraken has expressed optimism about its prospects of going public, potentially becoming the second crypto firm to do so after Coinbase. The SEC's decision not to pursue enforcement against the 'Hawk Tuah' meme coin also reflects this shift, influenced by the change in leadership following Donald Trump's election.
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The SEC may be backing off one of its most aggressive anti-crypto moves. Last year, it proposed extending custody rules to all client assets — including crypto. Now it’s considering dropping the rule entirely.