Kraken, the well-known cryptocurrency exchange, announced that the U.S. Securities and Exchange Commission (SEC) has agreed to drop its lawsuit against the company. This decision marks a significant shift in the SEC’s approach, as it has recently dismissed several legal actions against various crypto firms.
In a blog post, Kraken stated that there will be no admission of wrongdoing, no fines, and no changes to its business practices. The SEC did not provide any comments regarding this development.
Over the past month, the SEC has paused or dismissed at least nine lawsuits against crypto companies, including high-profile exchanges like Coinbase and Binance. These actions come as part of a broader trend, as the SEC has been reassessing its enforcement strategy following the collapse of FTX in 2022.
Kraken was initially sued by the SEC in November 2023 for allegedly operating as an unregistered securities exchange. Earlier in the year, the company had settled with the SEC over claims that its crypto staking service violated securities laws, resulting in a $30 million penalty. Despite this, Kraken has since resumed its staking services in the U.S.
The SEC’s change in stance comes after the departure of former chair Gary Gensler, who left his position in January. Paul Atkins is expected to take over as the new chair, while Mark Uyeda is currently acting in the role.
This shift in the SEC’s enforcement actions is noteworthy, especially given the political landscape. Former President Donald Trump had criticized Gensler and promised to fire him if re-elected, reflecting the growing tension between regulators and the crypto industry.
Kraken co-founder Jesse Powell has been a notable supporter of Trump, which may have influenced the company’s relationship with the current regulatory environment. As the crypto market continues to evolve, the implications of these legal changes will likely be felt across the industry.