Sec stops litigation against Kraken ends “vain, politically motivated campaign”

The SEC filed a lawsuit against Kraken in 2023. The agency claimed that the platform was running without proper registration.

According to an announcement from the exchange, the Securities and Exchange Commission (SEC) has agreed to withdraw the lawsuit against Kraken.

In a post published on Monday, March 3rd, Kraken said:

“The SEC's decision to dismiss lawsuits against the United States (and many others) is more than just a legal victory. This is a turning point for the future of US cryptography.”

California-based Crypto Exchange added that it will “end a 'vain, politically motivated campaign' that will curb innovation and investment and clear the path to a steady, moving forward regulatory regime.

In a post on X, Kraken's former Chief Justice Officer Marco Santori said he “beated Sec.”

We beat the SEC!

Congratulations to the best legal team at Crypto.

The fight – and be hit – SEC was not predicted. The lawyers, the lobbyists, and everyone in between… we had to get it.

For more information, please see https://t.co/k35yrp6gkn https://t.co/sgpfof4q1w

– Marco Santori (@msantoriesq) March 3, 2025

SEC will file lawsuit

The SEC filed a lawsuit against Kraken in 2023, claiming that the platform was operating without proper registration.

Last August, US District Judge William Ollick denied Kraken's motion to dismiss the SEC case. In court documents, the judge noted that the regulator's allegations that the crypto exchange provided unregistered securities were plausible.

With the end of the SEC lawsuit, Kraken added in the announcement:

Changes in direction

The move from the SEC is in a series of lawsuits against the crypto platform. These include Coinbase, Robinhood Crypto, and Uniswap.

The change in direction in the SEC comes amid the custody approach after President Donald Trump took office in the White House. Many are waiting to see if the SEC's ongoing lawsuit against Ripple will close immediately.

In 2020, the agency first sued Ripple, co-founder Ripple, and Ripple CEO Chris Larsen, Brad Garlinghouse.