The U.S. Securities and Exchange Commission (SEC) has agreed in principle to dismiss its lawsuit against leading cryptocurrency exchange Kraken in another “win” for the industry following successive agreements with several major players over lawsuits and Wells notices.
Kraken announced the development late Monday, calling it “a win for fairness” in the broader crypto industry.
Kraken CEO Blasts Enforcement-First Approach
While Kraken co-CEO Dave Ripley expressed optimism over the development, he also made sure to call out the previous SEC leadership for its enforcement-first approach toward digital assets and crypto firms.
“Regulation by enforcement has failed, and we will not allow it to define the next chapter of this industry. Regulation should be protecting consumers, not punishing pioneers,” he wrote.
Kraken is just one of several crypto firms in recent weeks that saw relief from SEC lawsuits.
The Wall Street regulator recently dropped its investigations into the crypto arm of fintech firm Robinhood and crypto protocol Uniswap among a few others as part of the new leadership’s efforts to rebuild the agency’s relationship with the industry.
SEC Announces Crypto Task Force Roundtable
The potential full dismissal of the SEC’s lawsuit against Kraken came on the same day the financial regulator announced its crypto task force led by Commissioner Hester Peirce will host a roundtable on “security status.”
Kicking off on March 21 with the first roundtable, “How We Got Here and How We Get Out – Defining Security Status,” the meetings will be a series called “Spring Sprint Toward Crypto Clarity.”
The first roundtable is open to the public and will be held from 1 p.m. through 5 p.m. at the SEC office in Washington D.C.
“I am looking forward to drawing on the expertise of the public in developing a workable regulatory framework for crypto. The roundtables are an important part of our engagement with the public,” Peirce said.
Here’s what to expect from the roundtables:
- Limited attendees – The SEC clarified that while the roundtable on March 21 is open to the public, in-person participants will be limited and they will be subject to security checks.
- Breakouts – Attendees will also be allowed to participate in small group breakout sessions on a closed-door setting.
- Livestreamed – The SEC will livestream the roundtable on its website. A recording will be available at a later date.
Peirce Unveils Task Force Staff
Aside from the roundtables series announcement, Peirce has also unveiled the full list of staffers under the crypto task force first established by Acting Chair and Commissioner Mark Uyeda.
Peirce said the task force members are staffers from Uyeda’s office and also from other divisions across the Commission.
The SEC has implemented major changes since former Chair Gary Gensler left the agency, but it remains to be seen whether changes within the regulatory agency will help deliver a regulatory framework for digital assets anytime soon.
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