The U.S. Securities and Exchange Commission (SEC) has announced its decision to dismiss its ongoing enforcement action against the American cryptocurrency platform Kraken, as revealed in a recent announcement.

Kraken was initially sued by the SEC in November 2023 for allegedly mixing customer and corporate funds and functioning as an unlicensed securities broker. Instead of opting for a settlement, Kraken fought back, leading to a federal judge acknowledging that the SEC had a strong case warranting a trial. Now, pending approval from the SEC’s commissioners, Kraken states that the lawsuit will be dropped “with prejudice,” signifying no admission of guilt, no penalties imposed, and no alterations made to their operations.

This victory for Kraken occurs amid the SEC’s broader strategic retreat from enforcing regulations in the cryptocurrency realm, a shift stemming from former Chair Gary Gensler’s leadership. The agency’s current administration has signaled a desire to abandon the aggressive regulatory tactics previously employed and to establish clearer guidelines for the sector.

“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,” stated Kraken in its latest blog update.

Although some crypto cases are being shelved, others remain unresolved. Major players such as Ripple and Cumberland DRW continue to face legal challenges from the SEC. Meanwhile, investigations into various platforms like OpenSea, Gemini, and Robinhood Crypto have concluded without fines, while inquiries into companies like Crypto.com, Immutable, and Unicoin persist.