SEC Drops Kraken Lawsuit: A New Era of Crypto Regulation
1min read The U.S. Securities and Exchange Commission (SEC) has agreed to dismiss its lawsuit against Kraken, the second-largest U.S. cryptocurrency exchange by volume, without any penalties, charges, or admission of guilt. The SEC's decision comes as a significant shift in its regulatory approach towards the crypto industry.
Kraken announced that the SEC has agreed to dismiss the lawsuit "with prejudice," meaning it cannot be refiled. The exchange emphasized that there are no penalties to be paid, no changes to its business, and no admission of wrongdoing. Kraken had previously criticized the SEC's investigation, stating that it was politically motivated and meritless.
The exchange's CEO, Jesse Powell, expressed his satisfaction with the outcome, stating that Kraken looks forward to regulatory clarity from the new regime. This decision is part of a series of changes in the SEC's crypto regulatory policies, including the consolidation and creation of a new crypto task force, the Cyber and Emerging Technologies Unit (CETU).
In recent weeks, the SEC has also dropped several other high-profile investigations into prominent crypto companies, such as coinbase, Robinhood, OpenSea, and MetaMask. These developments suggest a more lenient approach to crypto regulation under the new administration.
The SEC's decision to drop the lawsuit against Kraken without any penalties or charges is a significant victory for the crypto exchange and the broader crypto industry. This move may signal a shift in the SEC's regulatory stance, potentially leading to more clarity and cooperation between the agency and the crypto sector.
