• The SEC is probing Kraken, one of the world’s largest cryptocurrency exchanges, over a possible breach of U.S. securities law.
• Reports suggest that the probe is already in advanced stages and could result in a settlement between the exchange and the regulator.
• If a settlement is reached, it could give more regulatory power to the SEC and reinforce their bid to assume jurisdiction over crypto tokens.
SEC Investigating Kraken for Securities Violations
The U.S. Securities and Exchange Commission (SEC) has launched an investigation into crypto exchange Kraken for potentially offering unregistered securities in violation of U.S. securities laws. Reports suggest that this probe is already in its advanced stages, with a potential settlement between the exchange and regulator being announced soon.
Enforcement Action Possible
If Kraken settles with the SEC, they could be subject to fines, penalties or other punishments for breaching U.S securities law regulations as well as reinforcing the agency’s authority over crypto assets throughout 2023 as stated by Chairman Gary Gensler last December.
Kraken Offers 185 Cryptocurrencies
Kraken currently offers more than 185 cryptocurrencies globally, many of which are not offered within the United States borders – making it unclear which offerings are being scrutinized by regulators at this time.
Continued Regulatory Clampdown
This recent enforcement action follows Coinbase’s similar probe from last year and further reinforces The SEC’s strategy to clamp down on crypto assets deemed as securities without publishing any clear guidelines for regulating them in America yet still maintaining their power over these digital assets through enforcement actions such as this one against Kraken now underway..
This latest attempt to regulate digital currencies by investigating Kraken shows that The SEC are continuing their efforts to ensure compliance amongst exchanges operating within U.S borders while also looking to expand their grasp on these digital assets if a settlement is reached regarding this case – giving them even more power when it comes to matters concerning cryptos in future years ahead..