"SEC Drops Kraken Lawsuit: Crypto's Turning Point in US"
1min read The U.S. Securities and Exchange Commission (SEC) has dismissed its lawsuit against Kraken, a prominent cryptocurrency exchange, with prejudice. This move signals a broader retreat from crypto enforcement actions and a potential shift in regulatory strategy. The SEC's decision to drop the case without any admission of wrongdoing, penalties, or required changes to Kraken's business operations has been welcomed by the crypto industry as a turning point for the future of digital assets in the United States.
Kraken framed the SEC's decision as a pivotal moment for the crypto industry, suggesting it signals the end of a politically driven crackdown that has hampered innovation and investment. The exchange expressed optimism about a more stable regulatory landscape moving forward. The announcement from Kraken added that the SEC's decision to dismiss its lawsuit against the platform is more than just a legal victory—it's a turning point for the future of crypto in the US. It ends a wasteful, politically motivated campaign, lifts uncertainty that stifled innovation and investment, and clears the path toward a stable, forward-thinking regulatory regime.
The SEC initially sued Kraken in November 2023, accusing the platform of operating as an unregistered securities exchange, broker, dealer, and clearing agency. The regulator alleged that Kraken facilitated the trading of crypto asset securities without proper registration, depriving investors of key protections such as audits, disclosures, and oversight. Kraken denied the allegations and countered that the SEC had not provided clear guidelines on whether digital assets should be classified as securities. The exchange filed a motion to dismiss the case, citing regulatory uncertainty and a lack of fair notice. While a federal judge allowed certain aspects of Kraken's defense to proceed, the SEC continued to pursue its claims until now.
Kraken acknowledged the role of the new leadership at the SEC and the White House in influencing the decision, suggesting a shift in regulatory priorities. The company credited what it described as "bold and thoughtful" leadership for fostering a new era of crypto innovation. Senior Advisor Marco Santori celebrated the outcome, stating, "We beat the SEC! Congratulations to the best legal team in crypto. Fighting—and beating—the SEC was not foretold. Lawyers, lobbyists, and everyone in between… We had to earn it."
The dismissal follows a series of dropped crypto-related enforcement actions by the SEC under Acting Chairman Mark Uyeda. The regulator recently abandoned cases against Gemini, 