• The SEC is probing the crypto exchange Kraken over a possible breach of U.S. securities law.
• The probe is already in advanced stages and could result in a settlement with the SEC.
• If Kraken settles, it could lead to more regulatory power for the SEC over crypto tokens.
SEC Investigates Kraken for Securities Law Violation
The U.S. Securities and Exchange Commission (SEC) is currently conducting an investigation into cryptocurrency exchange Kraken for potentially offering unregistered securities to customers in the United States. Reports suggest that the investigation has reached an advanced stage and there may be a settlement between Kraken and the SEC in the coming days, which could have implications on how the agency exercises jurisdiction over crypto assets going forward.
SEC’s Position on Crypto Assets
In December of last year, Chairman Gary Gensler stated that one of his main goals for regulating crypto throughout 2023 was to ensure compliance among crypto exchanges and lending platforms. However, Gensler did not specify which offerings were being scrutinized by the regulator or what actions they were taking against them if any violations were discovered.
Kraken currently offers more than 185 cryptocurrencies globally, many of which are not available in the United States due to regulatory restrictions imposed by different countries and jurisdictions around the world. It is unclear at this time as to what exactly Kraken has been accused of doing wrong by offering these services without proper authorization from relevant authorities in those countries where it operates its services, but it is likely that there will be some form of punishment should a settlement be reached between them and the SEC regarding this matter.
Potential Penalties Faced By Kraken
If found guilty of breaching rules around offering securities, then Kraken may face fines, penalties or other forms of punishments for their alleged violation(s)of securities law(s). The exact details surrounding this case are still unknown as both parties remain tight-lipped about their ongoing negotiations but if a settlement does occur then it could potentially open up new doors for increased regulation within this industry moving forward depending on how much authority is granted to them by court order or otherwise during said negotiations with regards to enforcing such laws upon participating firms within this space going forward as well as other potential areas related thereto that may require closer examination from regulators worldwide due to potential risks posed therein when dealing with digital assets such as cryptocurrencies etc…
This investigation into Kraken comes just months after Coinbase was also subject to similar probes by regulators who are looking increasingly closely at how companies are operating within this industry due to heightened scrutiny placed onto them recently due to various events surrounding their practices leading up until now thus indicating further intent from authorities worldwide towards ensuring safety standards are met when dealing with digital currencies etc… All eyes will now turn towards seeing how things progress between both parties involved in this case although no specific timeline has yet been provided regarding when any conclusion might eventually come out publicly so stay tuned!