The Securities and Exchange Commission (SEC) is investigating one of the world’s biggest cryptocurrency exchanges, Kraken, for offering unregistered securities.
Kraken is entangled in an investigation by a top US monetary controller about whether it defied securities norms related to offerings to American clients. However, it could lead to a settlement in the coming days, as per the report.
A settlement with the SEC could pressure other crypto firms to make a deal with the regulator, which has more than once expressed that the majority of the tokens being offered are securities that ought to be the agency’s guidelines.
This is not the first time that exchange has been under scrutiny. In November, Kraken agreed to pay US Treasury Department $362K for violations of sanctions against Iran.
SEC Chair Gary Gensler said that “the runway is getting shorter” for crypto firms to enlist with the organization.