Kraken News: SEC Drops Lawsuit and Offers Resignation Incentive to Employees

In a major development for the cryptocurrency industry, the U.S. Securities and Exchange Commission (SEC) has made two significant announcements that could reshape the regulatory landscape. Here’s a summary of the key details:

SEC Drops Case Against Kraken, Offers Resignation Incentive

On Monday, March 3, 2025, the U.S. Securities and Exchange Commission (SEC) made two significant moves that could reshape the crypto regulatory landscape. First, it agreed to drop its enforcement lawsuit against Kraken, which was accused of commingling customer and corporate funds and operating without proper registration. Second, as reported by Bloomberg, the SEC is allegedly offering eligible employees a $50,000 incentive to resign or retire by April 4, 2025, as part of the Trump administration’s push to downsize the federal government.

Kraken Considering IPO in 2026: Bloomberg

Crypto exchange Kraken is considering an initial public offering (IPO) by the first quarter of 2026, as the regulatory environment in the U.S. has sufficiently changed to make a public listing viable, according to Bloomberg. The exchange was once targeted by the Securities and Exchange Commission (SEC) but the regulator has since retreated from litigation under the Trump administration. The SEC plans to drop its suit against Kraken. Kraken aims to pursue public markets for the benefit of its clients, partners, and shareholders.