Kraken, one of the largest cryptocurrency exchanges in the world, is the subject of an investigation by the Securities and Exchange Commission (SEC) because of allegations that it offered unregistered securities.
Kraken is now embroiled in a probe being conducted by a leading US monetary controller to determine whether or not the company violated securities regulations in relation to offers made to American customers. According to the article, there is a possibility that it may result in a settlement in the next days.
A settlement with the SEC could put pressure on other cryptocurrency companies to reach agreements with the regulator, which has stated on multiple occasions that the majority of the tokens being offered are securities that ought to be governed by the agency’s guidelines. A settlement with the SEC could force other cryptocurrency companies to reach agreements with the regulator.
This is not the first time the transaction has been subjected to close examination. In November, Kraken reached a settlement with the United States Treasury Department that required the payment of 362,000 dollars for breaches of sanctions imposed on Iran.
The chairman of the Securities and Exchange Commission (SEC), Gary Gensler, has said that “the runway is growing narrower” for cryptocurrency companies to register with the agency.
Compiled by Coinbold