Last Updated on 2 mins by John Piper

According to reports, the United States Securities and Exchange Commission is investigating Kraken, one among the top cryptocurrency exchanges in America.

Bloomberg reports that the SEC is investigating crypto exchange Kraken for possible violations of U.S. securities laws. An anonymous source claims that the investigation is well-underway and that a settlement may be reached soon. The reason for the launch of this investigation was not disclosed.

Gary Gensler, Chairman of the SEC, had previously stated that the goal of cryptocurrency regulation is to establish the infrastructure necessary for cryptocurrency trading platforms and digital assets lending platforms to comply with the law. This could be done by registering directly with the SEC or through other financial authorities in the nation to ensure compliance and follow financial law. He stated that crypto service providers that don’t comply with standards will be shut down.

“Come into compliance. Your field won’t last long if it is not subject to public policy norms em>

Despite this warning Kraken CEO Dave Ripley said that he did not intend to register Kraken with SEC as it does no offer securities.

“There is no token that’s securities-related that we are interested in listing…

Ripley thinks Kraken’s cryptocurrencies are not securities. Gensler disagrees, noting that many cryptocurrencies other than Bitcoin ($BTC), are securities to the SEC.

It is hard to identify which cryptocurrencies are securities without a clear classification. It will be crucial for exchanges and other market players to fully understand and adhere to the rules in order to avoid enforcement actions as the regulatory landscape changes.

Coin Insider’s first article, The SEC probes Kraken over securities law, appeared first here