The Securities and Stock Exchange Committee agreed to drop a lawsuit against Kraken, which sought to organize the cryptocurrency company as a stock exchange, according to the company.
“Today it coincides with a pivotal moment for Krakin. SEC employees have agreed in principle to reject a lawsuit against Kraken with bias, without any recognition of the error, the lack of penalties and there are no changes to our business,” the company said in a statement.
This decision represents another sign of the shift towards a more soft organizational approach to enforcing encryption in the Trump administration.
The issue is against kings
SEC filed a lawsuit against Kraken in November 2023, accusing the work company as a mediator, merchant, exchange, and the clearing agency without appropriate registration.
The lawsuit also claimed that Kraken had encouraged the assets of customer encryption and coins with her, which poses a “great risk to loss” as defined by the independent auditor.
Kraken had already settled with SEC once before, in February 2023 agreed to stop providing Crypto Staking services in the United States and paid $ 30 million of sanctions.
However, the company later introduced a new product for customers in the United States across 37 states and regions in January 2024.
According to Kakin, the Securities and Stock Exchange plans to reject the lawsuit with prejudice, which prevents the agency from reshaping the same claims in the future.
The case will be rejected without any recognition of the error, penalties, or changes required for Kraken’s commercial operations.
The shift in the organizational scene of encryption in the United States
Under the leadership of Gary Ginsner, the Supreme Education Council often followed an approach to implementation, and to follow up on judicial cases and investigations against encryption companies such as Coinbase, UISWAP and Opensea for various reasons.
This strategy faced criticism within the industry for innovation and focus on legitimate companies instead of bad actors.
SEC’s recent measures may indicate a transformation in the position of the United States government on encryption. “This issue was not about to protect investors – other mysterious enforcement measures instead of clarifying it. It has undergone a start -up industry that has repeatedly urged clear rules of the road,” Kraken, whose case, said, said.
He also added:
The stable and expected organizational framework will encourage responsible growth, attract investment and ensure that the United States remains competitive in the economy of global digital assets.
This step follows a wider direction of the regulatory decline in the encryption sector.
In addition to the kraken case, SEC has ended its investigations into UISWAP, Coinbase, Gemini, Metamask, Opensea, Trone Foundation, Robinhood and others.
The organizer also faced a setback in the case of encryption that it sought to follow.
Currently, the Ripple XRP suit remains the only main encryption case that is still active for SEC.
The agency indicated that the new Crypto Works squad creates a more comprehensive and more clear regulatory framework for digital assets.
SEC says that SEC is to reject the “political motivation” lawsuit against the Crypto exchange first appeared on Invezz.
