Cryptocurrency exchange Kraken announced on Monday that the Securities and Exchange Commission staff has agreed to dismiss its lawsuit against the company.
According to Kraken, the SEC will dismiss the case with prejudice, meaning it cannot be reopened. The agreement includes no financial penalties or admission of wrongdoing by the company.
“This dismissal lifts that cloud of uncertainty,” Kraken said in its statement. “It reaffirms that businesses which prioritize compliance and consumer protection should not be subject to arbitrary legal battles.”
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In 2023, the SEC charged Kraken with operating as an unregistered securities exchange, broker, dealer, and clearing agency. This is the latest in the Trump era trend of the regulator softening its stance on cryptocurrency. The SEC also recently paused or dropped several cryptocurrency enforcement actions, including cases against Coinbase.
The Trump administration issued executive orders establishing a working group focused on “strengthening US leadership in digital finance” and developing a supportive regulatory framework. The cryptocurrency industry contributed substantially to Trump’s 2024 campaign and inauguration.
SEC Commissioner Hester Peirce’s Crypto Task Force is currently working to develop clearer regulatory guidelines for the industry, according to Kraken’s statement.
Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
