The U.S. Securities and Exchange Commission (SEC) has reportedly been investigating crypto exchange Kraken for possible violations of offering unregistered securities in the country. It still isn’t apparent which crypto tokens or offerings are drawing scrutiny by the financial watchdog.
The investigation against Kraken is reportedly at an advanced phase, and it is possible that a settlement may be reached in the days to come, as stated in the latest report. The fall of FTX late last year has put the industry under intense scrutiny in the States, and any action taken against Kraken might have far-reaching consequences.
A settlement with the SEC might put pressure on other cryptocurrency firms to negotiate arrangements with the regulator, which has stated on multiple occasions that the majority of the tokens being traded are securities that should be subject to the agency’s rules.
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