Michaela
The U.S. Securities and Exchange Commission (SEC) has agreed in principle to drop its Kraken lawsuit, signaling a shift toward a more cooperative regulatory approach under the current administration.
In a March 3 blog post, Kraken announced that the case would be dismissed with prejudice, meaning it cannot be reopened. The exchange stated that it would not admit to any wrongdoing, pay any penalties, or alter its business operations.
Kraken described the SEC’s decision as a pivotal moment for the future of cryptocurrency in the U.S. The exchange emphasized that this move marks the end of a “wasteful, politically motivated campaign” and removes the uncertainty that had hindered innovation and investment, paving the way for a stable and progressive regulatory framework.
“We appreciate the new leadership both at the White House and the Commission that led to this change. Their bold and thoughtful leadership will lead to a new era of U.S. crypto innovation,” Kraken wrote.
In 2023, the SEC filed a lawsuit against Kraken, accusing the exchange of operating as an unregistered securities exchange, broker, clearing agency, and dealer. The regulator also alleged that Kraken had improperly mixed customer funds with corporate funds. Kraken denied the charges, and a federal judge determined there was sufficient merit for the case to move forward to trial.
SEC Ends Yuga Labs Investigation Amid Kraken Lawsuit Dismissal
The SEC’s decision to dismiss the Kraken lawsuit marks a shift in the U.S. regulatory stance on cryptocurrency, reflecting a more lenient approach. The commission has also closed its investigation into Yuga Labs, ending the probe that examined whether the company’s Bored Ape Yacht Club (BAYC) non-fungible tokens (NFTs) and ApeCoin violated federal securities laws.
In a post on X, the NFT company shared that this decision came after over three years of litigation. “This is a huge win for NFTs and all creators pushing our ecosystem forward. NFTs are not securities,” Yuga Labs wrote.
In late 2022, the SEC launched its investigation into Yuga Labs, the inquiry focused on determining whether the sale of these NFTs could be considered an unregistered offering of securities.
Yuga Labs faced increased pressure as the SEC examined whether the structure of its NFT sales and associated token offerings met the legal definitions of investment products that should be regulated by the commission.
Read More
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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
