Kraken, one of the world's largest cryptocurrency exchanges, said on Monday the U.S. Securities and Exchange Commission agreed in principle to dismiss a civil lawsuit accusing it of operating illegally as an unregistered securities exchange.

Kraken said the US Securities and Exchange Commission has agreed in principle to drop its lawsuit against the cryptocurrency exchange, the latest in a series of dismissals of legal actions against crypto companies by the market regulator.

The SEC dismisses its lawsuit against Kraken, with no wrongdoing admitted or penalties, emphasizing a need for clear crypto regulations.

Kraken said on Monday that the U.S. Securities and Exchange Commission agreed in principle to dismiss its civil lawsuit against the cryptocurrency exchange. In a statement on its blog, Kraken said the dismissal is with prejudice,

Kraken called the SEC’s decision to drop the case a “turning point for the future of crypto in the U.S.” in a Monday blog post

By dismissing this action, the SEC is signaling to the industry that, one, it will not pursue these types of 'registration' cases going forward and, two, it will presumably focus its resources on fraud cases that harm consumers,