A California federal judge partially granted the SEC's request in the case against crypto exchange Kraken, accused of offering unregistered securities.
Case Against Kraken
The SEC accuses Kraken, the second-largest U.S. crypto exchange, of offering unregistered securities on its platform. This is part of a broader SEC initiative to regulate crypto exchanges.
Arguments on the Major Questions Doctrine
Judge William Orrick struck down Kraken's argument that the SEC exceeded its authority under the 'major questions doctrine.' The doctrine suggests that agencies cannot claim regulatory power without Congress' clear grant. Orrick ruled that the SEC's actions were within its mandate.
Current Status and Future Steps
Kraken argues that the SEC did not provide clear notice of securities law violations, citing the Howey test. The case continues with aspects including an appeal on whether SEC's evidence suffices.
The court partially supported the SEC, but Kraken continues to dispute the allegations, claiming the platform's actions do not violate securities laws. The case highlights the regulatory impact on the crypto industry.
