SEC Dismisses Kraken Lawsuit as Exchange Resumes On-Chain Staking for US Users

Cryptocurrency exchange Kraken announced on Monday (today) that the US Securities and Exchange Commission (SEC) had agreed in principle to dismiss a civil lawsuit accusing it of operating as an unregistered securities exchange.

The SEC’s decision follows a shift in the regulatory environment for cryptocurrency in the US. Kraken is now moving to capitalize on this change. The company has reintroduced on-chain staking services for American customers.

Kraken Lawsuit Dropped, SEC Adjusts Stance

Kraken confirmed that the lawsuit dismissal is with prejudice, meaning it cannot be refiled. The company stressed that the dismissal comes without any admission of wrongdoing, no penalties, and no changes to its operations, as reported by Reuters.

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

The lawsuit, filed in November 2023, was part of former SEC Chair Gary Gensler’s initiative to bring more cryptocurrency activities under SEC regulation.

However, with changes in US leadership, especially after President Donald Trump’s second term and the appointment of Paul Atkins, a lawyer supportive of digital assets, the SEC has adjusted its approach to cryptocurrency regulation.

Kraken called the dismissal “a turning point” for the U.S. cryptocurrency sector. The exchange described the lawsuit as politically motivated, arguing that it had hindered innovation and investment. Kraken also thanked the “new leadership” at both the White House and the SEC for their role in the reversal.

Kraken Resumes Staking Services for US

Kraken has reintroduced on-chain staking services for US customers, nearly a year after settling with the SEC in February 2023, as reported by Finance Magnates.

The exchange now offers staking through Kraken Pro in 39 states and territories, with 17 assets available, including Ethereum (ETH) and Solana (SOL). This move follows a broader shift in the U.S. regulatory landscape, as the previous administration’s stringent crypto policies have loosened, allowing Kraken and others to resume services once curtailed.