The US Securities and Exchange Commission (SEC) has agreed to drop its lawsuit against Kraken, marking a major reversal in its approach to crypto enforcement. 

This decision comes amid a broader shift. In the past week, the SEC dropped at least six lawsuits and legal actions against crypto firms, including Coinbase and MetaMask.

SEC Vs. Kraken is Finally Over

The lawsuit against Kraken, filed in November 2023, accused the exchange of operating as an unregistered securities exchange, broker, dealer, and clearing agency. 

The SEC claimed that Kraken allowed the trading of crypto asset securities without proper registration, depriving investors of necessary protections such as audits, disclosures, and oversight.

Kraken denied the allegations and argued that the SEC had failed to establish clear guidelines on whether digital assets should be classified as securities. 

The exchange filed a motion to dismiss the case, citing regulatory uncertainty and a lack of fair notice. A federal judge allowed parts of Kraken’s defense to proceed, but the SEC continued to press its claims.

“The SEC’s decision to dismiss its lawsuit against us (and many others) is more than just a legal victory — it’s a turning point for the future of crypto in the US It ends a wasteful, politically motivated campaign, lifts uncertainty that stifled innovation and investment, and clears the path toward a stable, forward-thinking regulatory regime,” Kraken wrote in its official statement.

The agency’s decision to drop the lawsuit reflects a changing stance on crypto enforcement. Over the past week, it has quietly withdrawn multiple legal actions against major crypto companies. 

No More Crypto Enforcement from the SEC

In addition to Coinbase and Kraken, the Commission has dropped its probe into Gemini, MetaMask, OpenSea, Tron Foundation, Robinhood, and others. The regulator also saw defeat in a particular crypto case that it actually wanted to pursue.

Over the weekend, the SEC lost a major case against Richard Heart, the founder of HEX and PulseChain.

This shift follows increasing pressure from lawmakers and industry leaders who have criticized the SEC’s aggressive regulatory approach. Although its current Commissioner is against dismissing these legal proceedings, it seems like the organization will no longer pursue aggressive enforcement.

“We beat the SEC! Congratulations to the best legal team in crypto. Fighting – and beating – the SEC was not foretold. Lawyers, lobbyists and everyone in between… We had to earn it,” wrote Marco Santori, Senior Advisor at Kraken.

Kraken’s victory may set a precedent for other crypto firms facing similar lawsuits. The decision to drop these cases signals a possible recalibration of the SEC’s strategy, raising questions about how crypto regulation will evolve in the coming months.

As of now, the Ripple XRP lawsuit is the only major crypto case still active for the Commission. However, given that Donald Trump has included XRP in his US crypto reserve plan, this lawsuit will likely be dropped in the same manner.

Ethereum recently failed to breach the $2,500 resistance, leading to a pullback. The altcoin king has since fallen, now trading at $2,354. Despite the decline, ETH shows signs of a gradual recovery. 

A key shift in investor behavior, particularly among whale addresses, may provide the support needed for an uptrend.  

Ethereum Selling Stops

Whale addresses, holding between 10,000 to 100,000 ETH, had been selling aggressively. Over the past week, they offloaded 640,000 ETH worth $1.5 billion, contributing to Ethereum’s struggle near $2,500. However, selling pressure has eased, signaling a shift in sentiment.  

In the last 24 hours, whales have paused their sell-off, aligning with Ethereum’s recent price stabilization. This behavioral change could indicate confidence in ETH’s recovery. If large holders continue to hold their assets, Ethereum may see reduced volatility and stronger price support.  

Ethereum’s Liveliness indicator suggests long-term holders (LTHs) have also stopped selling. This metric rises when LTHs liquidate holdings and declines when they accumulate or hold. Over the past few days, the indicator has remained flat, signaling a pause in selling.  

This trend supports Ethereum’s price stability as long-term investors preserve market confidence. If LTHs maintain their holdings, ETH could build momentum for a breakout. A sustained downtick in Liveliness would reinforce bullish sentiment, indicating accumulation rather than distribution.  

ETH Price Recovery Ahead

Ethereum is attempting to secure $2,344 as a support floor, now trading at $2,354. Holding this level could allow ETH to recover recent losses, targeting $2,549 as the next resistance. A successful retest of this zone would confirm bullish momentum.  

If ETH breaches $2,549, it could rally toward $2,654. Surpassing this level may push Ethereum into consolidation below $2,814, mirroring previous market cycles. This would establish a stable price range before further upward movement.  

However, failing to hold $2,344 could trigger a decline. ETH may fall through $2,267, potentially testing $2,170 as the next major support. A drop below this level would invalidate the bullish outlook, reinforcing bearish momentum in the short term.

Cronos, the EVM-compatible blockchain developed by Crypto.com, has proposed reissuing 70 billion previously burned CRO tokens. 

Announced on March 3, 2025, the initiative seeks to restore the total supply of CRO to its original 100 billion. This would effectively reverse a significant token burn conducted in February 2021.

Cronos Calls for Token Burn Reversal

The reissued tokens will be allocated to a Cronos Strategic Reserve escrow wallet. The move is designed to support Cronos’ and Crypto.com’s long-term roadmap.

“Making America the World Capital of Crypto will ensure the successful execution of the Cronos roadmap, hence we are proposing that the community vote on the creation of a Cronos Strategic reverse, a reversal of the February 2021 token burn, to support this ambition,” the blog read.

Cronos’ leadership frames this as a pivotal step toward a “new golden age” for the blockchain. The restored token supply is intended to bolster liquidity and provide a financial buffer for ecosystem growth.

A core focus of this strategy is institutional adoption. The roadmap aims to position CRO among the top 10 blockchain protocols, with plans to develop a CRO exchange-traded fund (ETF) to offer regulated exposure to institutional investors. Additionally, the project is working toward US regulatory approval to integrate the ETF into institutional liquidity pools.

Beyond the ETF, the Cronos Strategic Reserve will support broader initiatives. These include traditional finance (TradFi) crossover projects, primarily by seeding the CRO ETF. It will also fund artificial intelligence (AI)-related initiatives, such as grants, developer tools, and funding for decentralized applications (dApps). 

The reserve will operate under strict controls. Tokens will vest linearly over 10 years, approximately every 30.4 days, through the Cosmos SDK vesting account on the Cronos POS chain. This ensures a gradual release that aims to balance supply dynamics while funding strategic initiatives.

However, the move has raised eyebrows among the community.

“Did Cronos just become the Federal Reserve? Printing CRO out of thin air? A burn is a burn. Burnt tokens shouldn’t be brought back to life,” said one user on X.

Some investors worry that this might put downward pressure on CRO’s price.

“How in the world would this be healthy for CRO price action?” wrote another user.

Despite the concerns about potential dilution, CRO has shown strong price performance, rallying by double digits.

At press time, CRO was trading at $0.09. This marked a 15.5% increase over the past day.