The SEC has agreed in principle to dismiss its lawsuit against Kraken, a leading cryptocurrency exchange, which marks a major win for the crypto industry.
Kraken’s CEO, Dave Ripley, celebrated the outcome in a post on X, calling it a “massive win” for crypto, the United States, and the world. Ripley highlighted Kraken’s long-standing commitment to integrity and doing things correctly.
The SEC filed the lawsuit in November 2023, accusing Kraken of operating as an unregistered securities exchange. Kraken argued that its operations complied with the law and that digital assets should not be treated like traditional securities.
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The dismissal of the case means that Kraken will not face penalties, and no changes will be required to its operations. The dismissal is with prejudice, meaning the SEC cannot reintroduce the case.
Ripley also expressed that “regulation by enforcement has failed.” He emphasized that the future of the crypto industry should focus on consumer protection rather than punishing industry pioneers.
In his tweet, Ripley pointed out that cryptocurrency will play a significant role in the world economy. He welcomed the shift in regulatory focus under the current administration.
Broader Trends in SEC Enforcement
This development follows a series of similar actions by the SEC. These actions include the withdrawal of enforcement cases against cryptocurrency exchange Coinbase, Robinhood Markets’ crypto operations, Gemini, and decentralized crypto exchange Uniswap.
This trend suggests a growing shift in the SEC’s approach to crypto regulation since the change in SEC leadership under President Trump. It could signal a more favorable environment for cryptocurrency exchanges moving forward.
Ripley also clarified that cryptocurrency represents a step toward greater financial freedom for individuals. He called for comprehensive regulations that foster innovation and help the industry grow.
He concluded by stating that crypto can potentially impact the global economy significantly. This decision signals a hopeful outlook for the future of the cryptocurrency industry.
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