“By dismissing this action, the SEC is signaling to the industry that, one, it will not pursue these types of ‘registration’ cases going forward and, two, it will presumably focus its resources on fraud cases that harm consumers, said Scott Armstrong, a principal at McGovern Weems and a former federal prosecutor who served as senior counsel in cases involving cryptocurrencies.
Kraken announced Monday that the U.S. Securities and Exchange Commission has “agreed in principle” to drop its lawsuit against the cryptocurrency exchange.
“The SEC’s decision to dismiss its lawsuit against us (and many others) is more than just a legal victory — it’s a turning point for the future of crypto in the U.S.,” Kraken said in a statement. “It ends a wasteful, politically motivated campaign, lifts uncertainty that stifled innovation and investment, and clears the path toward a stable, forward-thinking regulatory regime.”
