In a blog post on Monday, Kraken called the SEC's decision to dismiss the case “a critical moment for the future of cryptocurrency in the U.S.”
Updated March 3, 2025, 17:17 UTC Published March 3, 2025, 16:06 UTC
The U.S. Securities and Exchange Commission (SEC) has agreed to drop an ongoing lawsuit against U.S. cryptocurrency exchange Kraken, the company said Monday.
The SEC filed a lawsuit against Kraken in November 2023, accusing the exchange of commingling client and corporate funds while acting as an unregistered securities broker, clearing house, and dealer. Rather than reach a settlement with the SEC, Kraken chose to fight the charges, and a federal judge found the agency had a valid case to pursue. Now, pending approval from SEC commissioners, Kraken says the charges will be dismissed “with prejudice, without an admission of wrongdoing, without payment of penalties, and without any change to our business.”
Kraken’s success comes as the SEC continues to scale back its crypto enforcement efforts, which began under former Chairman Gary Gensler. The commission’s new leadership has signaled a shift away from the so-called “regulation by force” practiced by Gensler and promised to create clear rules for the crypto industry.
“The SEC’s decision to dismiss the lawsuit against us (and many others) is more than just a legal victory. It’s a pivotal moment for the future of cryptocurrency in the U.S. It will end a futile, politically motivated campaign, clear up the uncertainty that has stifled innovation and investment, and pave the way for a stable, forward-thinking regulatory regime,” Kraken said in a blog post on Monday.
The SEC previously filed a lawsuit asking to stay ongoing cases against Binance and the Tron Foundation, as well as their affiliated executives and companies.
While the SEC is dropping cryptocurrency cases like hot potatoes, not all defendants are out of the woods yet. Several major companies, including Ripple and Cumberland DRW, the crypto trading arm of Chicago-based trading giant DRW, are still locked in legal battles with the regulator. And while many SEC crypto investigations have been closed and will not result in charges — including those into OpenSea, Gemini, Robinhood Crypto, and Uniswap — others involving Crypto.com, Immutable, and Unicoin remain open.
Read More: As SEC Continues to Backtrack on Cryptocurrency Litigation, Here's What's Still Unresolved
