The US Securities and Exchange Commission (SEC) has agreed in principle to drop its lawsuit against cryptocurrency exchange Kraken, the company announced Monday.
The decision is part of a broader trend in which the regulator has paused or dismissed several crypto-related cases in recent weeks.
Kraken stated that the case would be dismissed with prejudice—meaning it cannot be reopened—without any financial penalties or admission of wrongdoing. The lawsuit, originally filed in November 2023, accused Kraken of operating as an unregistered securities exchange, broker, dealer, and clearing agency.
While the SEC has not officially commented on the Kraken case, the agency previously announced in February that it was reviewing its approach to cryptocurrency regulation.
Kraken attributed the lawsuit’s dismissal to what it described as “new leadership” at the White House and the SEC, calling the move a turning point for the industry.
“This ends a wasteful, politically motivated campaign, lifts uncertainty that stifled innovation and investment, and clears the path toward a stable, forward-thinking regulatory regime,” the company said in a statement.
The decision aligns with the Trump administration’s recent efforts to take a more supportive stance on digital assets. The administration has created a working group to “strengthen US leadership in digital finance” and has proposed a regulatory framework aimed at fostering innovation in the sector. Over the weekend, cryptocurrency prices surged after Trump expressed support for a national reserve of various digital currencies.
Trump’s position on cryptocurrency has evolved significantly since 2021, when he referred to Bitcoin as a “scam.” More recently, he has pledged to make the US the “crypto capital of the planet,” a position welcomed by industry leaders and investors.
Kraken is not the only crypto-related company to see a shift in regulatory actions. On the same day, Yuga Labs, the company behind the Bored Ape Yacht Club NFT collection, announced that the SEC had closed its investigation into whether certain NFTs should be classified as securities.
Other crypto firms, including Coinbase, Robinhood’s crypto division, Gemini, and decentralized exchange Uniswap, have also seen SEC enforcement cases withdrawn or paused in recent weeks.
Kraken co-CEO Dave Ripley framed the SEC’s decision as a positive step for the industry.
“Crypto is coming, and it will have a big impact on the world economy,” Ripley said. “It’s great to see that this administration wants to lead.”
The Washington Post and Benzinga contributed to this report.
