Kraken, a leading cryptocurrency exchange, has taken legal action to dismiss lawsuits filed against it by the US Securities and Exchange Commission (SEC), citing concerns about potential repercussions for the broader US financial regulatory framework.
Kraken Wants SEC's Allegations Dismissed
This development comes before the trial, when Judge William H. Orrick is set to preside over the case on June 12 in the Northern District of California, according to court filings.
In documents filed with the court, Kraken claims that denying the SEC's allegations was necessary to avoid what it perceives as a “significant realignment” of the U.S. financial regulatory structure.
The lawsuit, filed by the SEC last November, alleges that Kraken is not registered as a broker, clearinghouse or exchange, and indicates that legal challenges remain after the exchange's previous agreement on the staking service.
Kraken's defense relies on the classification of cryptocurrencies as commodities rather than securities, arguing that the assets listed in the SEC's complaint fall into that category.
In response to Kraken's request to dismiss the case, the SEC filed a 39-page objection last month, asserting its authority to enforce registration requirements for securities brokers.
The SEC rejected Kraken's claim that its jurisdiction exceeded legislative limits, emphasizing that its actions were consistent with Congressional powers to enforce the Securities Act and the Exchange Act.
*This is not investment advice.
