The United States Securities and Exchange Commission, SEC has agreed to dismiss the lawsuit against Kraken exchange. Kraken confirmed the development in a blog post today, adding that the decision was made without prejudice. The exchange also highlighted that there was no admission of guilt, no penalties was incurred and zero changes were made to its business.
Going further, the exchange stated that the SEC decision to dismiss the suit against Kraken was a turning point for the future of crypto in the United states. The exchange added that this landmark decision also put an end to the era of wasteful and politically motivated campaign, lifting uncertainty in the region. It also paves way for a stable, and forward-thinking regulatory regime.
Kraken also expressed sincere gratitude to the leadership at White House and SEC for their unending support for cryptocurrency. The exchange added that their bold and thoughtful leadership would lead to a new era of innovation in U.S. crypto ecosystem.
The exchange reaffirms its dedication to fostering a future where innovations and accountable regulations can harmoniously co-exist. Kraken added that it is on a mission to accelerate the adoption of cryptocurrencies in the U.S. The exchange added that it would continuously partner with leading industry giants and regulatory bodies to promote clarity, fairness, and progress in digital finance. Kraken would also ensure the protection of clients’ right to freedom and privacy.
The genesis of the lawsuit between SEC and Kraken
Recall that the lawsuit between SEC and Kraken began in November 2023 after the commission sued the exchange for operating as an uregistered securities exchange, broker, dealer, and clearing agency. SEC also alleged that Kraken violated the securities laws since 2018. The commission also accused the exchange of mixing users’ funds with its own, thereby creating a risk of financial loss for customers.
Since the United States transitioned into a new political era, the country has witnessed significant changes in its cryptocurrency development. On February 17th this year, SEC also reached an agreement to settle the agelong battle between itself and Coinbase exchange.
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