Cryptocurrency exchange Kraken has rejected SEC allegations of offering unregistered securities and has requested a jury trial.
Regulatory Overreach Cited by Kraken
Kraken argues that the U.S. Securities and Exchange Commission (SEC) has overstepped its regulatory authority by filing charges against the exchange. In a recently filed notice, Kraken asserts that digital assets such as ADA, SOL, ALGO, MATIC, and others do not meet the criteria of securities under the Howey Test. The exchange also emphasized that the SEC has not provided a clear explanation for classifying these tokens as securities.
Kraken Challenges SEC’s Terminology in Lawsuit
Kraken has also raised concerns about the terminology used by the SEC in the lawsuit. In particular, the exchange pointed out the ambiguity and lack of clarity in terms such as 'crypto asset securities,' 'Kraken-traded securities,' 'proprietary assets,' and 'investors.'
Other Examples
Kraken's decision to contest the SEC allegations mirrors the legal strategy employed by Ripple, which has also opted to fight the SEC in court. While other exchanges like eToro have agreed to limit the number of cryptocurrencies they offer and paid fines, Kraken remains determined to defend its stance.
Kraken continues to defend its position and seeks a jury trial to demonstrate that its digital assets are not securities and that the SEC is overreaching in its regulatory efforts.
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