SEC Agrees to Dismiss Lawsuit Against Kraken Crypto Exchange
The U.S. Securities and Exchange Commission (SEC) will drop its enforcement lawsuit against Kraken, as announced by the exchange. The SEC had accused Kraken of commingling customer and corporate funds while operating as an unregistered securities broker. Kraken opted to contest the charges, which a federal judge deemed plausible for trial.
Key points include:
- Charges will be dropped with prejudice, meaning no admission of wrongdoing or penalties.
- This decision signifies a shift in SEC's approach under new leadership away from "regulation by enforcement."
- Kraken views this as a turning point for crypto regulation in the U.S., aiming for clarity and stability.
- Other ongoing SEC cases against companies like Ripple and Cumberland DRW continue despite the retreat in crypto enforcement actions.
- Some investigations into other companies remain open, including Crypto.com and Unicoin.
More details can be found in the announcement on Kraken's blog.