The SEC is investigating Kraken for selling unregistered securities to U.S. investors. 

The crypto exchange will likely reach a settlement with the securities watchdog. 

• The details of the case are not public; therefore, there is no information on which securities are in question. 
• SEC Chair Gary Gensler urged crypto firms to register with the SEC and avoid violating federal securities laws. 
• The SEC also claims that all crypto assets, with the exception of Bitcoin, are securities.