• The US Securities and Exchange Commission (SEC) is reportedly probing crypto exchange Kraken for potential securities violations.
• The probe focuses on certain offerings that Kraken has made to its US customers, which may be in breach of securities laws.
• SEC Chairman Gary Gensler has repeatedly said that he believes many digital tokens are likely securities and exchanges should register with the SEC or face enforcement action.
Kraken Facing Probe From US Securities and Exchange Commission
The United States Securities and Exchange Commission (SEC) is reportedly probing cryptocurrency exchange Kraken over possible securities violations. This investigation comes as the regulator seeks to bring crypto exchanges into compliance with existing rules and regulations.
Details of Alleged Probe
The probe is looking into certain offerings that Kraken has made to its US customers, according to a Feb 8 Bloomberg report. It is believed that the investigation is at an advanced stage, potentially leading to a settlement in the coming days. As of yet, it is unknown which offerings are being scrutinized by the SEC.
Kraken Responds to Allegations
When asked about the alleged probe, an SEC spokesperson told Cointelegraph “The SEC does not comment on the existence or nonexistence of a possible investigation”. However, Kraken CEO Dave Ripley has argued in September that there was no need for his company to register with the SEC as they do not offer securities, adding “There are not any tokens out there that