SEC Will Drop Lawsuit Against Cryptocurrency Exchange Kraken

Kraken, which is considered one of the largest cryptocurrency exchanges, shared that the U.S. Securities and Exchange Commission has agreed in “principle” to dismiss a civil lawsuit against teh company.

The SEC’s lawsuit, filed under the Biden administration, claimed Kraken was operating illegally as an unregistered securities exchange.

Kraken, in a statement, shared that the lawsuit was a “wasteful, politically motivated campaign” by the Biden admin.

The cryptocurrency exchange added, “We appreciate the new leadership both at the White House and the Commission that led to this change.”

JUST IN: 🇺🇸 SEC drops lawsuit against Kraken. pic.twitter.com/PY1BjMk1GU

— Bitcoin Magazine (@BitcoinMagazine) March 3, 2025

🚨 BREAKING: Kraken has announced that the SEC has agreed to drop its lawsuit against the cryptocurrency exchange. pic.twitter.com/9UoCldHEDc

— Cointelegraph (@Cointelegraph) March 3, 2025

Check out what USA Today reported:

Kraken, one of the world’s largest cryptocurrency exchanges, said on Monday the U.S. Securities and Exchange Commission agreed in principle to dismiss a civil lawsuit accusing it of operating illegally as an unregistered securities exchange.

In a statement on its blog, Kraken called the dismissal a turning point for cryptocurrency that ended a “wasteful, politically motivated campaign” begun during the Biden administration, and which stifled innovation and investment.

Kraken said the dismissal includes no admission of wrongdoing, no penalties, and no changes to its business. It also said the dismissal is with prejudice, meaning the SEC cannot bring the case again.

“This case was never about protecting investors,” Kraken said. “It undermined a nascent industry that repeatedly urged clear rules of the road.

“We appreciate the new leadership both at the White House and the Commission that led to this change,” Kraken added.

Kraken said the SEC has agreed in principle to drop its lawsuit against the cryptocurrency exchange, the latest in a series of dismissals of legal actions against crypto companies https://t.co/6Mju75TPrz

— Bloomberg (@business) March 3, 2025

Per Kraken:

Today marks a pivotal moment for Kraken. The SEC staff has agreed in principle to dismiss its lawsuit against Kraken with prejudice, with no admission of wrongdoing, no penalties paid and no changes to our business.

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.

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.

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