“More broadly, outside of the crypto space, these dismissals reflect that the administration is rapidly changing agency priorities and acting to implement its agenda. If you don’t adjust to these changes, you’ll fall behind competitors who do, said Renato Mariotti, a partner at Paul Hastings’ investigations and white-collar defense practice.
The U.S. Securities and Exchange Commission officially dismissed on Thursday evening three high-profile enforcement actions—against Cumberland DRW LLC, Consensys Software Inc., Payward Inc. and Payward Ventures Inc., together known as Kraken—as part of the agency’s larger regulatory shift under the Trump administration.
“The Commission’s decision to exercise its discretion … rests on its judgment that the dismissal will facilitate the Commission’s ongoing efforts to reform and renew its regulatory approach to the crypto industry, not on any assessment of the merits of the claims alleged in the action,” the SEC said in a statement. “The Commission’s decision to seek dismissal of this litigation does not necessarily reflect the Commission’s position on any other case.”
