SEC to drop lawsuit against Kraken, ending a wasteful, politically motivated campaign
- The SEC filed a lawsuit against Kraken in 2023
- The agency argued that the platform was operating without conducting the proper registration
- Kraken said the SECs decision was a turning point for the future of crypto in the US
The US Securities and Exchange Commission (SEC) has agreed to drop its lawsuit against Kraken, according to an announcement from the exchange.
In a post published on Monday, March 3, Kraken said:
The SECs decision to dismiss its lawsuit against us (and many others) is more than just a legal victory its a turning point for the future of crypto in the US.
The California-based crypto exchange added that it brings to an end a wasteful, politically motivated campaign that has stifled innovation and investment, and clears the path toward a stable, forward-thinking regulatory regime.
In a post on X, Marco Santori, Krakens former chief legal officer, said: We beat the SEC.
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.
Details here: https://t.co/K35yRp6gKn https://t.co/sGPFOF4q1W
Marco Santori (@msantoriESQ) March 3, 2025
SEC files a lawsuit
The SEC filed a lawsuit against Kraken in 2023, arguing that the platform had been operating without the proper registration.
Last August, US District Judge William Orrick denied Krakens motion to dismiss SECs lawsuit. In court documents, the judge noted that the regulators allegations that the crypto exchange had offered unregistered securities were plausible.
With the ending of the SECs lawsuit, Kraken added in its announcement: This dismissal confirms what weve said all along: Regulatory actions must be based on facts, not political agendas.
Change of direction
The move from the SEC comes amid a series of dropped lawsuits against crypto platforms. These include Coinbase, Robinhood Crypto, and Uniswap.
The change of direction at the SEC comes amid a pro-crypto approach following US President Donald Trumps taking office in the White House. Many are now waiting to see whether the SECs ongoing case against Ripple will soon be concluded.
In 2020, the agency first sued Ripple, Chris Larsen, co-founder of Ripple, and Brad Garlinghouse, Ripples CEO, after alleging that they raised $1.3 billion through the sale of XRP, an unregistered securities offering.
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Text source: CoinJournal: Home
