Payward, Inc. and Payward Ventures, Inc. (d/b/a “Kraken”)

The Securities and Exchange Commission (SEC) announced the dismissal of a civil enforcement action against Payward Inc. and Payward Ventures Inc., collectively known as Kraken, with prejudice. This decision was made to facilitate the SEC's efforts to reform and renew its regulatory approach to the crypto industry. The dismissal does not reflect the Commission's position on other cases and is separate from any assessment of the claims alleged in the action. This development may impact the crypto industry by signaling a shift in the SEC's regulatory approach, emphasizing cooperation and settlement over litigation. Important compliance considerations include monitoring the evolving landscape for potential changes to regulations and guidelines affecting cryptocurrency companies.