The U.S. Securities and Exchange Commission (SEC) has officially withdrawn its civil lawsuit against crypto exchange Kraken, which had been accused of operating as an unregistered securities exchange. The case was dismissed with prejudice, meaning it cannot be refiled, and was resolved without any admission of guilt, fines, or changes to Kraken’s operations.
Kraken hailed the decision as a “turning point for the future of crypto in the U.S.,” stating that the original lawsuit had hindered innovation and investment across the industry.
This move signals a shift in the SEC’s regulatory stance following the beginning of Donald Trump’s second presidential term. The Trump administration has expressed support for the digital asset industry and is working to limit the autonomy of regulatory bodies like the SEC.
New SEC Chairman Paul Atkins, a known advocate for digital assets, is expected to ease regulatory pressure and dismiss many ongoing lawsuits against crypto firms.
Previously, the SEC also dropped similar cases against major crypto players including Coinbase, OpenSea, and Robinhood, reflecting a broader move toward a more industry-friendly regulatory approach.
The dismissal of the Kraken case underscores the new administration’s intention to foster a more favorable environment for the growth and development of the crypto industry in the United States.
