Kraken is pushing for a jury trial in its ongoing legal battle with the SEC, which a California judge recently allowed to proceed. The exchange joins Binance and Coinbase, who face similar SEC allegations of violating federal securities laws.
It appears that the legal dispute between the SEC and Kraken, a significant cryptocurrency exchange, will not be resolved shortly. The SEC has filed a lawsuit against the crypto exchange, and the exchange has requested a jury trial.
A California magistrate permitted the SEC’s lawsuit against Kraken last month. Other crypto exchanges, such as Binance and Coinbase, have also been accused of violating federal securities laws and have received identical verdicts, similar to Kraken. We should investigate the most recent developments in this matter.
Rumors Regarding Kraken
Kraken was initially sued by the Securities and Exchange Commission (SEC) in November of the previous year. The crypto exchange was accused of violating federal securities laws in the lawsuit, which was submitted in the Northern District of California.
The SEC is seeking to permanently halt the exchange from violating these laws and has requested that the crypto exchange return its “ill-gotten gains” in addition to other civil penalties. Additionally, it designated 11 tokens, including ADA, SOL, and MATIC, as unregistered securities.
In Defense of Kraken
Kraken has refuted all allegations made by the SEC in its most recent court filing. It responded to each allegation and provided 18 defenses. Kraken’s primary argument is centered on its interpretation of U.S. securities statutes.
The Securities and Exchange Acts do not discuss digital assets, according to the exchange. The crypto exchange further stated that it was not legally obligated to register with the SEC.
From a legal standpoint
Kraken contended that the SEC lacks the authority to regulate it. The firm argued that the SEC should not regulate digital assets because they are not classified as “investment contracts.”
Kraken acknowledged that it listed over 220 crypto assets globally and offered services such as margin trading and an over-the-counter trading division. The exchange asserts that these attributes do not qualify it as a securities exchange or merchant.
Complaints Against the Securities and Exchange Commission
Kraken has also accused the SEC of acting unfairly, asserting that it took action against the crypto exchange without appropriate notice or process. The exchange implied that the SEC’s litigation infringed upon its First Amendment rights.
Kraken is steadfast in its defense of its platform and business model, and the case will now proceed to trial. The outcome could significantly impact the future of crypto regulation in the United States.
