We are at a very interesting point for the crypto industry in that we are seeing not just unprecedented consumer support for the asset class but also greater political and legal wins. The number of active crypto wallets is higher than it has ever been, and this is only on track to increase. Investors are flocking to legacy tokens like Bitcoin and Ether that have continued to deliver healthy returns, as well as looking into new avenues for investing in emerging tokens. There are not only the record pre-sale numbers that many tokens are reporting but also interest in crypto launchpads and IDOs. These offer a unique opportunity for investors to get involved in projects before they fully hit the market, and as Anthony Clarke writes, the best crypto launchpads are seeing mammoth support.
It is then beneficial that major companies that previously saw regulatory challenges are starting to see a turnaround. One of the latest comes from Kraken, a major crypto exchange, which was sued by the Securities and Exchange Commission back in 2023. At the time, Kraken had been accused of mishandling user funds as well as running an unregistered securities company. This was a common accusation leveled against crypto companies, with the likes of Coinbase and Binance also being taken to court. Now, almost two years since the initial filling, the SEC has announced that it has dropped the lawsuit against Kraken.
Not only has Kraken been vindicated legally, but it has been noted that there are no fines or settlements to be made or any changes to its business model. However, several companies that were caught in the crossfire of legal proceedings in the last few years seem to be experiencing a change in their fortunes. Some of this might be due to the trump administration being in power. Famously, Trump promised to fire former SEC chair Gary Gensler even before he was elected. Following his re-election, Gensler exited his role, and the current SEC acting chair is much more favorable towards the industry.
As such, this victory on Kraken's part is seen not just as a win for the company but the industry as a whole. This was the same sentiment shared in the official press release announcing the lawsuit drop.
"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,” the company said.
Now that Kraken is out of the woods, it will be interesting to see what other companies are able to resolve their issues with the SEC. The commission and the industry have famously had a contentious relationship, but the next few years could be quite positive. In the best case scenario, it could usher in a new era of not just cooperation but unprecedented crypto industry growth.
This article was written by FL Contributors at www.forexlive.com. Read More Details
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