Kraken announced on March 3 that the US Securities and Exchange Commission (SEC) has decided to withdraw the lawsuit against them.
This decision puts an end to what Kraken describes as a "wasteful, politically motivated campaign" and paves the way for a more stable and progressive regulatory framework.
The dismissal of the lawsuit is with prejudice, meaning that there is no admission of wrongdoing, no sanctions imposed and no adjustments required to Kraken's operations.
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The lawsuit, which was filed by the SEC in November 2023, accused Kraken of operating as an unregistered broker, dealer, exchange and clearing agency.
Kraken suggests the SEC's recent actions could signal a change in the US government's stance toward cryptocurrencies.