- The SEC dismissed its lawsuit against Kraken, which had accused the exchange of operating as an unregistered broker, dealer, exchange and clearing agency.
- Kraken emphasised that the dismissal—issued with prejudice—comes without admitting wrongdoing, penalties, or operational changes, labeling the case as politically motivated.
- This move contrasts with the SEC’s previous “regulation by enforcement” strategy under Gary Gensler, which targeted multiple crypto firms and has faced widespread criticism.
The US Securities and Exchange Commission (SEC) has dismissed its lawsuit against crypto exchange Kraken, a stark contrast compared to the agency’s approach under former Chairman Gary Gensler.
Announced by Kraken on March 3, the dismissal —done with prejudice— ends what the exchange has described as a “wasteful, politically motivated campaign”. Moreover, the firm affirms that the case is dismissed without any admission of wrongdoing, penalties, or changes required to its business operations.
Related: Ethereum Foundation Revamps Leadership: Hsiao-Wei Wang and Tomasz Stańczak Named Co-Directors
The blog post reads:
This dismissal lifts that cloud of uncertainty. It reaffirms that businesses like Kraken, which prioritize compliance and consumer protection, should not be subject to arbitrary legal battles. A stable, predictable regulatory framework will encourage responsible growth, attract investment and ensure the U.S. remains competitive in the global digital asset economy.
Kraken A Shift in the SEC’s Regulation Approach
Under Gensler’s ruling, the SEC was heavily targeting multiple crypto companies as part of an enforcement strategy known as “regulation by enforcement”, targeting Coinbase, Uniswap, OpenSea and many other high-profile industry players.
Criticism didn’t take long to form, with many crypto leaders and advocates arguing that this approach stifled innovation by focusing on established players rather than the actual bad actors. Many others, like Kraken, said these actions were just “politically motivated”.
In November 2023, the SEC filed a lawsuit against Kraken, alleging that the exchange had functioned as a broker, dealer, exchange and clearing agency without the necessary registration.
Related: President Trump to Host Landmark White House Crypto Summit on March 7
The Kraken lawsuit dismissal comes as the Trump administration has created new crypto units, promoting initiatives that could benefit the industry in the long term.
For instance, Trump is set to host a landmark White House Crypto Summit on March 7, shortly after announcing the creation of a strategic crypto reserve consisting of Bitcoin, Ethereum and other major assets.
The post SEC Ends ‘Wasteful, Politically Motivated Campaign’, Drops Kraken Lawsuit appeared first on Crypto News Australia.
