SEC To Drop Lawsuit Against Kraken As War on Crypto Collapses

The Securities and Exchange Commission’s (SEC) agreed to dismiss its lawsuit against crypto exchange Kraken has ended. The agency will drop all charges against the exchange with no admission of wrongdoing, penalties paid, or changes to its business, Kraken said in a March 3 statement.

The move follows several other dismissals for major crypto businesses, including Coinbase, Robinhood, OpenSea, Gemini, and Uniswap Labs, as the SEC takes a more pro-crypto stance in the post-Genser administration.

Under Gensler’s leadership, the agency aggressively pursued enforcement actions against crypto companies, often relying on broad interpretations of existing securities laws rather than creating new, industry-specific regulations. The result was a wave of lawsuits and settlements that left the crypto industry uncertain, forcing companies to spend millions on legal battles.

“The SEC’s decision to dismiss its lawsuit against us (and many others) is more than just a legal victory — it’s a turning point for the future of crypto in the U.S. It ends a wasteful, politically motivated campaign, lifts uncertainty that stifled innovation and investment, and clears the path toward a stable, forward-thinking regulatory regime,” Kraken said.

“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.”

The SEC vs. Kraken

The SEC first sued Kraken in February 2023 for violating securities laws by operating and offering an unregistered staking-as-a-service program. The exchange paid $30 million in fines to settle the charges and discontinued its staking program.

Nine months later, the SEC sued Kraken again, this time for operating an unregistered securities exchange, broker, dealer, and clearing agency. The case had been ongoing since then until both parties agreed to drop all charges.