The United States Securities and Exchange Commission (SEC) has agreed to dismiss its lawsuit against the American-based crypto exchange Kraken. Interestingly, the move marks another significant victory for the crypto community industry in the U.S. and beyond.
In its lawsuit against Kraken in November 2023, the SEC alleged that the exchange operated as an unregistered securities exchange, dealer, and clearing agency. The SEC claimed that since at least September 2018, Kraken had facilitated the buying and selling of crypto assets without proper registration, depriving investors of essential protections.
SEC to Dismiss Lawsuit Against Kraken
Kraken announced via its official blog post that dismissing the lawsuit does not include an admission of wrongdoing, penalties, or changes to its business operations. The company views this development as a turning point for the crypto industry, ending what it described as a “wasteful, politically motivated campaign” that had stifled innovation and investment.
The American exchange claims the “dismissal lifts the cloud of uncertainty” and will encourage growth in the crypto sector. It further appreciated the new White House and SEC leadership, attributing the positive change to their approach. With excitement over the development, the exchange remarked:
“Today’s decision is a step toward a more inclusive financial system — one where individuals, not government overreach, shape their own economic futures. By embracing crypto innovation, the U.S. can unlock new avenues for economic prosperity and financial freedom.”
Kraken is not the First
The SEC has recently shifted its approach toward crypto regulation, leading to the dismissal of several high-profile investigations and lawsuits. The change follows the resignation of former SEC Chair Gary Gensler, who was infamous for being hostile toward the digital industry.
The SEC has halted its investigation into another American-based crypto platform, Gemini, opting not to pursue enforcement action. Similarly, the SEC has also ended its investigation into Uniswap, a decentralized exchange platform. The probe initially focused on Uniswap’s operations and potential regulatory violations.
In addition to dismissing lawsuits, the SEC has restructured its crypto division, forming a “Crypto Task Force” to formulate clear regulatory guidelines and scale down its investigations. This regulatory progress has led to the dropping of lawsuits against major crypto entities, including Coinbase.
