Kraken, the popular crypto exchange, is facing a probe by the Securities and Exchange Commission (SEC) The regulator has filed the probe to ascertain whether Kraken broke securities rules.
The SEC is assessing the unregistered securities offered by Kraken during the advanced stage. It can even lead to a settlement in the coming days, as revealed by a person close to the matter. The person has refused to come out in public and has not talked about the exact offers or tokens.
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Given the uncertain environment in the crypto space, the news alarmed many users. After FTX’s sudden collapse and Coinbase CEO talking about the SEC banning crypto staking, the startle was expected. That is why many crypto enthusiasts searched for an in-depth Kraken review to get all the new and recent updates about the issue of these unregistered securities.
Given Kraken’s market position, any action against the platform can entice massive ramifications. Finalizing a settlement with the SEC can also add pressure on other firms to deal with the regulator.
The SEC has been presenting its tight stand on crypto tokens, deeming most of the securities. Gary Gensler, the Chair of the SEC, stated that the runaway is now getting shorter. Crypto firms need to register with the regulator, added Gary.
Both the SEC and Kraken, legally named Payward Inc., have refused to comment on the situation. While SEC probes do not necessarily mean enforcement action, they can lead to companies paying fines or other penalties.
Kraken is the number 3 crypto exchange with a massive daily trading volume of 650 million dollars. The platform supports 185 cryptocurrencies, showing its market capabilities. This is not Kraken’s first rodeo with regulators, as the platform had reached a settlement with the Treasury’s Office of Foreign Assets Control.
The exchange paid over 360,000 dollars while investing 100,000 dollars in sanctions compliance. With the SEC investigating competitors like Coinbase, the entire crypto space seems to be on edge.