SEC Officially Files Litigation Dismissal In Kraken, Consensys, Cumberland Cases; 'When Ripple?' $XRP Army Asks

The U.S. Securities and Exchange Commission (SEC) has officially announced the end of litigation against cryptocurrency companies Kraken, Consensys, and Cumberland DRW LLC, and while the crypto community is celebrating, XRP token holders are wondering when the financial regulator will make new announcements around its case against Ripple.

The SEC, under new leadership, updated its Litigation Releases page Thursday, revealing the latest developments around its crypto cases.

SEC Formally Files Joint Stipulations to Dismiss Lawsuits

When former Chair Gary Gensler led the regulatory agency, the SEC initiated multiple lawsuits against several crypto firms and other firms with crypto-related offerings, citing securities laws violations over their alleged failure to register with the regulator.

On Thursday, three cases were dismissed, marking a major turnaround for what was once a very controversial financial regulator.

• Cumberland – The block trading and exchange traded derivatives provider, which also provides trading of crypto forwards, was sued by the Gensler SEC in October. According to the SEC, currently led by Acting Chairman Mark T. Uyeda, the "Commission believes the dismissal of this case is appropriate," thus, the filing of the joint stipulation between the SEC and Cumberland.
• Consensys – The SEC brought its case against the leading blockchain and Web3 software company in June last year, citing securities laws violations over its staking services and digital asset swaps services. Thursday's joint stipulation noted that the parties are asking the court to dismiss the case "without costs or fees to either party." Notably, Consensys fought back fiercely against the SEC, even revealing that the Gensler SEC already deemed Ethereum (ETH) as a security before Gensler – under oath – refused to clarify to lawmakers whether ETH was a security or a commodity.
• Kraken – The SEC's case against Payward, Inc. and Payward Ventures, Inc., together known as Kraken, was initiated back in November 2023. The leading crypto exchange sought to have the lawsuit dismissed, but the motion was denied in mid-2024. Thursday's joint stipulation marks a major victory for the exchange, and it officially confirms Kraken's announcement earlier this month that the regulator agreed to end the lawsuit.

News of the developments came as the SEC attempts to rebuild the Wall Street regulator's broken relationship with the crypto industry.

The SEC under Gensler was repeatedly accused of "regulatory overreach" and alleged debanking of crypto executives. The Gensler team said it only sought to enhance consumer protection in the financial realm.

$XRP Army Wants Faster Progress in Ripple Case

Meanwhile, the XRP Army, the large community of XRP holders who have stuck with Ripple despite its legal woes with the SEC, is asking when Ripple will be freed from the regulator's lawsuit.

Ripple is the largest corporate holder of XRP, and it is also overseeing development around the XRP Ledger.

Last week, Ripple CEO Brad Garlinghouse announced that the SEC has agreed to drop its appeal in the lawsuit. This week, Ripple also announced it is dropping its cross-appeal. However, there has been no formal filing by the regulatory agency.

One XRP Army member wondered whether the reason for delaying the filing for a similar document is "because they haven't voted yet," referring to "in principle" agreements needing a Commission vote.

Several others asked when Ripple's time will come, with one noting that it appears the SEC is "just trolling with the #XRPCommunity feelings."

The absence of a joint stipulation filing regarding the Ripple case, which lasted for four years, may have affected XRP prices as the token saw a 3% decline overnight.