The US SEC has agreed to dismiss its case against the Cryptocurrency Exchange Crackon.
Kraken Announced The US Securities and Exchange Commission plans to dismiss the case with prejudice, which means the agency cannot bring the same claim again.
As a result, the lawsuit will be left incorrectly, without any admission of amendments in the business operation of punishment, or crackon.
“SEC’s case, which misrepresen our coherent business model, was always without merit,” wrote Crackon. “This dismissal confirms what we have said: regulatory action should be based on facts, not political agenda.”
Background on lawsuit
The SEC sued Crackon in November 2023, in which the company was operated as an unregistered securities exchange, broker, dealer and clearing agency. The lawsuit also accused Crackon of competing with its own customer funds, piercing the risk of financial loss to the users.
This legal action followed the earlier agreement with SEC in February 2023, when the company agreed to shut down its stacking service in the US and pay $ 30 million in punishment.
Crackon has stated that it has not violated securities laws and criticized the SEC’s approach as unfair and unclear.
Second shift in policy
The dismissal of the lawsuit is part of a broader tendency. In recent weeks, SEC has demolished cases against coinbase and consensus to two other major players in the Cryptocurrency Space.
The agency recently announced that a new task force is working to establish a clear regulatory guideline for Crypto assets.
The SEC has long taken a strict stance on Crypto, arguing that many digital assets are qualified as securities under the American law. Under the Chair Gary Gensler, the agency has taken legal action against several exchanges, including violation of securities rules, Binens, Coinbase and Ripple.
The SEC is indicating a change in strategy, except for the Crackon trial. Instead of relying on cases to define the crypto rules, the agency may move towards making clear policies.
“Today’s decision is a step towards a more inclusive financial system – a one where the individuals shape their own economic futures, not the government,” the exchange wrote. “Crypto can unlock the new path for economic prosperity and financial freedom by embracing innovation.”
