- SEC Drops the Case Against Kraken
- The Kraken case began in November 2023
- Terminated with prejudice, so cannot be refiled
SEC dropped the case against Kraken, which began in November 2023, and the dismissing occurred with prejudice, so can’t be re-filed.
More About Dismissing the SEC Case Against Kraken
Another unambiguous move in which the SEC filed a joint stipulation that we have already seen with Gemini and now with Payward, Inc. and Payward Ventures, Inc. known to the Bolgin community as Kraken.
Recall that the case against one of the top crypto platforms began in November 2023, as part of a broader initiative when the SEC filed lawsuits against Coinbase and Binance as well.
Largely due to the changed composition of the SEC, and as a consequence of the Crypto Task Force program, we are seeing a rollback of these initiatives. Speaking specifically about Kraken, there are a few important aspects, such as the fact that the termination with prejudice, which means that it is closed permanently and cannot be reopened on the same grounds.
Also, an interesting aspect is that closing the case is a part of the wider program, and does not recognize Kraken as innocent, but only pursuing strategic reasons:
“The Commission’s decision to exercise its discretion and dismiss this pending enforcement action rests on its judgment that the dismissal will facilitate the Commission’s ongoing efforts to reform and renew its regulatory approach to the crypto industry.”
Also, the SEC separately noted:
“The Commission’s decision to seek dismissal of this Litigation does not necessarily reflect the Commission’s position on any other case.”
Conclusion
We are seeing a reversal of cryptocurrencies from the SEC, which could indicate such a priority that they close cases that they probably don’t want to waste resources on and undermine the overall vector.
Moreover, this isn’t the first time we’ve seen this, so we can assume that this isn’t an exception or a chance, but a fairly consistent stance on the part of the SEC.
Learn why this regulatory body is so important to the entire crypto industry. Stay tuned for updates, be adaptive in the rapidly evolving financial and crypto landscape, and keep your strategy grounded, balanced, and beneficial.
