SEC Lawsuit Against Kraken Dismissed
- 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 SEC’s 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 stated that the SEC’s decision to dismiss the lawsuit was significant for the future of crypto in the US.
According to Kraken, this move ends a “wasteful, politically motivated campaign” that has hindered innovation and investment in the crypto space.
Marco Santori, Kraken’s former chief legal officer, also commented on the victory over the SEC in a tweet.
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 Lawsuit Against Kraken
The SEC initiated a lawsuit against Kraken in 2023, alleging that the platform was operating without proper registration.
Last year, US District Judge William Orrick denied Kraken’s motion to dismiss the lawsuit. The judge noted that the SEC’s claims of unregistered securities offered by the crypto exchange were plausible.
Kraken emphasized in its announcement that the dismissal of the lawsuit reaffirms their stance that regulatory actions should be based on facts rather than political agendas.
Change of Direction at the SEC
The SEC’s decision to drop lawsuits against various crypto platforms, including Coinbase, Robinhood Crypto, and Uniswap, indicates a shift in approach towards crypto regulation.
This change aligns with a more pro-crypto stance following the administration change in the White House. The conclusion of the SEC’s case against Ripple is now eagerly anticipated by many.
In 2020, the SEC first sued Ripple, its co-founder Chris Larsen, and CEO Brad Garlinghouse, alleging that they conducted an unregistered securities offering raising $1.3 billion through the sale of XRP.
