The United States Securities and Exchange Commission (SEC) has initiated legal action against cryptocurrency exchange Kraken. The lawsuits stem from allegations that Kraken’s staking services operated as an unregistered securities exchange. This action impacts several cryptocurrencies, including , and Algorand.
Bloomberg ETF specialists noted the similarities between this case and previous actions taken by the SEC against other cryptocurrency exchanges. The SEC’s action signals an ongoing effort to subject cryptocurrency-related services to regulatory scrutiny and ensure compliance with applicable securities laws.
In related news, Binance, another major player in the cryptocurrency market, is reportedly close to reaching a deal with the US Department of Justice (DOJ). The size of the deal could be as high as $4 billion, matching CEO Changpeng Zhao’s frequent allusions to the number “4.” This potential settlement would likely involve a deferred prosecution agreement, potentially resolving the long-standing investigation into Binance’s alleged involvement in fraud and money laundering activities.
These lawsuits come at a time when cryptocurrency exchanges are facing increased regulatory pressure globally. These two cases highlight the evolving regulatory landscape for digital assets and the steps authorities are taking to address concerns about illegal activities and investor protection in the rapidly growing cryptocurrency market.
This article was generated and translated with the help of AI and reviewed by an editor. For more information, see our T&Cs.