The Securities and Exchange Commission dismissed a lawsuit against cryptocurrency exchange Kraken and closed an investigation against non-fungible token company Yuga Labs

title: Cryptocurrency Exchange Kraken and NFT Company Yuga Labs Escape SEC Lawsuits

The Securities and Exchange Commission has dismissed a lawsuit against cryptocurrency exchange Kraken and closed an investigation against non-fungible token company Yuga Labs, the two firms announced on Monday.

What Happened: Dave Ripley, co-CEO of San Francisco-based Kraken, said the SEC dismissed the lawsuit with no admission of wrongdoing, no penalties paid, and no changes to its business.

"Crypto is coming, and it will have a big impact on the world economy. It's great to see that this administration wants to lead.

The SEC has agreed in principle to dismiss its lawsuit against @krakenfx.It's a massive win for crypto, the United States of America, and the world. Since our inception, Kraken has operated with integrity and dedication to doing the right thing.Regulation by enforcement has…

— Blockware Solutions (@Blockwarecoin) August 21, 2023

The SEC sued Kraken in November, accusing the trading platform of violating federal securities laws by failing to register as a broker, a similar charge that the regulating body brought against fellow cryptocurrency exchanges Binance and Coinbase.

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In other news, Yuga Labs, known for launching the popular Ethereum ETH/USD-based NFT collection Bored Ape Yacht Club, said that the SEC has officially closed their investigation into the company.

"This is a huge win for NFTs and all creators pushing our ecosystem forward,” Yuga Labs wrote on X. “NFTs are not securities.”

After 3+ years, the SEC has officially closed its investigation into Yuga Labs.This is a huge win for NFTs and all creators pushing our ecosystem forward.NFTs are not securities.

Earlier this year, the SEC was investigating Yuga Labs over whether certain NFTs are "more akin to stocks" and if the sales of certain digital assets violate federal laws.

The SEC did not immediately return Benzinga’s request for confirmation.

The development follows a series of similar actions by the SEC, including the withdrawal of its enforcement case against cryptocurrency exchange Coinbase, Robinhood Markets' cryptocurrency operations, Gemini, and decentralized cryptocurrency exchange Uniswap.

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