Breaking: The SEC has dropped its lawsuit against Kraken, a major crypto exchange, just months after it donated $1 million to President Trump’s inauguration fund. This sudden move has people talking about whether politics influenced the decision.
According to reports from BeInCrypto, the SEC stopped its case against Kraken on March 3, 2025, raising questions because of the donation made in December 2024. The story is still unfolding, and many wonder what’s really behind this change.
The SEC first sued Kraken in November 2023, claiming it was running an unregistered securities exchange. But on March 3, 2025, the case was dropped, as confirmed by Kraken’s own blog. Insiders reveal this is part of a bigger shift at the SEC, with other crypto cases, like those against Coinbase, also being let go. Sources say the timing—only three months after the donation—has sparked rumors of a link, though nothing solid ties the two yet. Kraken, meanwhile, called the lawsuit a waste of time and cheered the outcome as a win for crypto.
Previously, Kraken settled with the SEC in February 2023, paying $30 million over its staking program. Historically, the SEC, led by Gary Gensler, was tough on crypto companies. But after Gensler left in January 2025 and Paul Atkins, who’s friendlier to crypto, was picked to take over, things seem to be changing. This could mean a new direction for how crypto is regulated.
According to John Reed Stark, who used to work at the SEC, this change is “unbelievable.” In a statement to WIRED, he said he’s stunned by how fast the SEC switched gears. Online, some crypto fans are thrilled, while others worry that donations might sway regulators.
This news could shake up the crypto world. Experts think it might lead to softer rules, maybe even pushing other companies to get political. However, it also brings up urgent worries about whether regulators can stay fair, with some demanding immediate answers to keep trust alive.
In summary, the SEC dropping its Kraken lawsuit after the Trump fund donation has everyone guessing about political influence. The bottom line is that while no proof connects the dots, this shows how tricky the mix of politics and crypto rules can be. Key takeaways are a possibly friendlier future for crypto and a big need for clear, honest regulation.
