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Big News: Kraken Lawsuit Dismissed by SEC, Ripple Still Stands in Legal Crosshairs
In a major development, the United States Securities and Exchange Commission (SEC) has agreed to dismiss its lawsuit against crypto exchange Kraken with prejudice. This decision means that no penalties will be imposed on the company, nor will it need to make any changes to its business operations or admit wrongdoing.
The SEC had initially filed the lawsuit in November 2023, accusing Kraken of mishandling customer funds and operating as an unregistered securities broker. Instead of settling, Kraken chose to fight the charges, leading a federal judge to rule that the SEC had presented a plausible case. However, it appears that the regulatory body has now decided to drop the charges after reaching an agreement with the company.
The dismissal is pending approval from the SEC’s Commissioners and will officially close the case once approved. Kraken celebrated this decision, stating that it marks a turning point for crypto regulation in the United States. The company believes that the move puts an end to what they called a “politically motivated campaign,” which had created uncertainty and hindered innovation and investment in the industry.
This significant development comes as the SEC, under its new leadership, appears to be shifting away from aggressive enforcement tactics. The agency has expressed a commitment to developing clear and fair regulations for the cryptocurrency market, rather than relying on “regulation by enforcement.”
It is worth noting that this dismissal does not affect Ripple, another major company in the industry, which still stands in legal crosshairs.
