The US Securities and Exchange Commission (SEC) has officially dropped its lawsuit against Kraken, one of the largest cryptocurrency exchanges in the US. This development is seen as both a major victory for Kraken and a significant turning point for the cryptocurrency industry.
The SEC had accused Kraken of operating as an unregistered securities exchange and had filed a lawsuit against the company in November 2023. However, recent statements indicate that the case will no longer continue.
Legal Process Between SEC and Kraken
The SEC had accused Kraken of making hundreds of millions of dollars by regulating the trading of 11 different crypto assets since 2018. The regulator argued that these assets should be considered securities.
Kraken, on the other hand, objected to the lawsuit, stating that crypto assets are not securities and that exchanges should not be subject to traditional securities rules. During this process, the company did not make any settlements and refused to make any changes to its business model.
In the end, the SEC decided to drop the case. This development is interpreted as a sign that the regulatory approach towards cryptocurrencies in the US is starting to soften.
Biden Administration Policy and Trump's Influence
The cryptocurrency sector faced strict regulatory pressures during the Biden administration. The SEC took tough steps against many major crypto companies and followed a policy of tightening regulations.
However, after the 2024 elections, changes began to occur in the US's crypto policies. With the re-election of Donald Trump, it seems that a more moderate policy has been adopted towards the crypto sector.
The SEC's dropping of the Kraken case is considered one of the most concrete signs of this policy change. In fact, the appointment of Paul Atkins, known as a friend of digital assets, as the new chairman of the SEC has had a great impact in the sector.
These developments may pave the way for clearer and fairer regulations in the crypto sector.
Kraken's Statement: Victory Announcement
Kraken made an official statement after the SEC dropped the case. The company described this development as "an indication that the political pressure that has hindered innovation in the crypto sector has ended."
Kraken's prominent statements:
They stated that they did not accept any charges, will not pay any fines and will not change their business models.
He emphasized that the crypto sector will continue to grow and that regulations should encourage innovation rather than hinder the sector.
The Kraken CEO stated that the end of the SEC's pressure is a great gain for the sector and that crypto initiatives will be able to move more comfortably in the coming period.
Kraken won its fight with the SEC and this is seen as a great victory in the crypto world. Crypto regulations in the US are evolving into a clearer and innovation-supporting structure.
In the coming period, more crypto-friendly regulations and a greater trust environment in the markets are expected. This change, especially in the US, may also affect global crypto markets.
Is this decision by the SEC a major turning point for the crypto sector or just the beginning? We will see its effects more clearly in the coming days.
Author: Besim Sen
