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.
