Kraken, a major cryptocurrency exchange, has taken legal steps to dismiss lawsuits brought against it by the US Securities and Exchange Commission (SEC). The exchange expressed concerns about the impact on the US financial regulatory framework. The case is scheduled to be heard by Judge William H. Orrick in the Northern District of California on June 12.

Kraken argues that rejecting the SEC's allegations is essential to prevent a significant restructuring of the US financial regulatory system. The SEC's lawsuit filed in November claims that Kraken is not registered as a broker, clearinghouse, or exchange. However, Kraken asserts that cryptocurrencies should be classified as commodities rather than securities, therefore falling outside the SEC's jurisdiction. Despite Kraken's request for case dismissal, the SEC filed a 39-page objection last month defending its authority to enforce registration requirements for securities brokers. The SEC maintains that its actions are consistent with Congressional powers granted by the Securities Act and the Exchange Act.

*This is not investment advice.