Investing.com -- Cryptocurrency exchange Kraken announced on Monday that the U.S. Securities and Exchange Commission (SEC) has agreed, in principle, to dismiss a civil lawsuit that had accused the company of operating as an unregistered securities exchange. Kraken shared this news in a blog post, noting that the dismissal comes with no admission of wrongdoing, no penalties paid, and no changes to its business operations.

The SEC chose not to comment on this development.

The lawsuit against Kraken was filed in November 2023, during the tenure of former SEC Chair Gary Gensler who was keen on bringing cryptocurrencies under the regulatory umbrella of his agency. However, the regulatory approach towards cryptocurrencies has seen a shift since U.S. President Donald Trump began his second term. Trump has nominated Paul Atkins, a Washington lawyer known for his supportive stance on digital assets, to be the SEC chair.

Kraken views the SEC’s decision to end the lawsuit as a significant moment for cryptocurrency in the United States. The company stated that this decision concludes a wasteful, politically motivated campaign that was hindering innovation and investment. Kraken expressed its appreciation for the new leadership at both the White House and the Commission, which it credits for this change in approach.

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