Crypto exchange Kraken faces new developments in its legal battle with the SEC. A federal judge in California has denied their appeal in the securities law violation case.
Denial of Appeal
Judge William Orrick denied Kraken's motion for appeal, emphasizing that it would only delay the case's resolution. This decision allows the lawsuit filed by the SEC in November 2023 to proceed.
Allegations and Kraken's Position
The SEC accuses Kraken of operating as a registered exchange, broker, and clearing agency. The exchange has denied these allegations and previously sought dismissal, which was rejected in August. Kraken claims there's substantial ground for differing opinions on applying the Howey Test, but Judge Orrick disagreed with their interpretation.
Next Steps in the Legal Process
The SEC also requested the dismissal of several of Kraken's defenses, arguing they could lead to unnecessary discovery. The case remains ongoing, with discovery expected to play a crucial role in its resolution.
The legal proceedings against Kraken continue. This denial of appeal highlights the court's need for further examination of the exchange's activities under securities law.
