SEC Withdraws Lawsuit Against Crypto Exchange Kraken

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Kraken announced on Monday that the US Securities and Exchange Commission has agreed in principle to dismiss a civil lawsuit alleging it operated as an unregistered securities exchange.

In a blog post, Kraken described the dismissal as a pivotal moment for the cryptocurrency industry, concluding what it termed a “wasteful, politically motivated campaign” initiated during the Biden administration, which they believe hindered innovation and investment.

Kraken clarified that the dismissal involves no admission of wrongdoing, no financial penalties, and no alterations to its business operations. Moreover, the case is dismissed with prejudice, preventing the SEC from reopening it in the future.

“This case was never about protecting investors,” Kraken said. “It undermined a nascent industry that repeatedly urged clear rules of the road. “We appreciate the new leadership both at the White House and the Commission that led to this change,” Kraken added.