SEC investigation into Kraken activity reported

SEC has opened an investigation into possible violations of securities laws by the Kraken crypto platform in offering products to U.S. users. The information is reported by Bloomberg.

A source did not specify whether the claims relate to a particular product or token.

The process is at an advanced stage. An agreement between Kraken and the regulator could be announced in the coming days.

The agency reminded that in December the SEC Chair Gary Gensler warned crypto firms about shortening the runway for their registration with the agency.

Investigations do not always lead to enforcement actions, but may result in fines or other sanctions, Bloomberg notes.

According to CoinGecko, 215 crypto assets have been listed on the platform. Staking is available to users.

In November 2022, Kraken agreed to pay a OFAC settlement of $362,000 for violations U.S. sanctions against Iran.

Earlier, the head of the SEC admitted that most crypto exchanges violate securities laws by listing unregistered investment contracts.

In July last year, it became known that Coinbase was under investigation over possible provision to U.S. residents of access to trading digital assets that could be deemed securities.

Last year the Commission brought 30 cases related to cryptocurrencies.

Cornerstone Research suggested that oversight of the industry will remain a priority for the SEC under Gensler. They noted that in May the agency almost doubled the size of the relevant division.

In February, Gensler said that crypto regulation would be a priority for 2023.