Crypto exchange Kraken is reportedly being investigated for selling unregistered securities, according to the U.S. Securities and Exchange Commission
The fall of FTX late last year has put the industry under intense scrutiny in the U.S., and any action taken against Kraken might have far-reaching consequences.
It isn’t apparent which crypto tokens or offerings are drawing scrutiny by the financial watchdog.
A settlement with the SEC might put pressure on other crypto firms to negotiate arrangements with the regulator, which has stated on multiple occasions that the majority of the tokens being traded are securities that should be subject to the agency’s rules.
Kraken is regarded as the third-largest crypto exchange by trading volume, conducting over $650 million a day.
he company claims that it supports more than 185 different cryptocurrencies on its website, but it is unclear how many of those cryptocurrencies are actually tradeable by customers.
