American cryptocurrency exchange Kraken is under investigation by the Securities and Exchange Commission (SEC) of the United States for providing unregistered securities to American investors.
According to those familiar with the situation, the probe has evolved to the point that Kraken will probably settle with the SEC soon.
The regulator, according to the article, is looking into whether the cryptocurrency exchange’s services to American customers violated any securities laws. The tokens and offerings under investigation are unknown because the matter has not been made public.
If the regulator is satisfied, other cryptocurrency companies may contact the SEC for registration agreements, as the organization has long recommended.
SEC Chair Gary Gensler urged cryptocurrency companies to register with the securities watchdog in December when speaking with Bloomberg and warned that the window was getting smaller.
Gensler is adamant that, aside from Bitcoin, practically all crypto assets are securities. He added that unregistered securities are typically offered by crypto exchanges, in violation of federal law.
The SEC’s complaint against Kraken is not the exchange’s first run-in with American officials. The firm settled with the Office of Foreign Assets Control (OFAC) of the U.S. Treasury Department late last year for aiding Iranian users in evading sanctions.
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