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Cryptocurrency discussions often revolve around the SEC, especially with its lawsuits against crypto exchanges. The latest development includes Kraken’s responses to the SEC’s lawsuit against it.
Cryptocurrency Exchange Kraken Calls for Dismissal of SEC Lawsuit
The cryptocurrency world has been abuzz with the lawsuit filed by the U.S. Securities and Exchange Commission (SEC) against Kraken. The crypto exchange has condemned the SEC’s “broad new theory” and called for the dismissal of the case.
Kraken’s petition to the Federal District Court clearly presents the exchange’s arguments. As stated by a Kraken spokesperson, the law clearly indicates that the assets in question in the SEC’s complaint do not constitute an ‘investment contract’ and that Kraken is not a securities exchange.
SEC Has Other Allegations
However, the SEC’s allegations are not limited to the crypto exchange Kraken. The lawsuit filed in the Northern District of California addresses the SEC’s latest claims about crypto staking and comes nine months after a previous agreement between the agency and Kraken. Kraken asserts that the SEC never presented them with the contract required by an ‘investment contract’ and therefore the SEC’s claims lack foundation.
Kraken’s defense coincides with a similar argument from the Texas Crypto Freedom Alliance (CFAT). CFAT argues that the SEC’s expanded scope is based on a new theory that would effectively ‘securitize’ various ordinary assets and commodities.
Kraken’s Call to Action
Kraken’s criticism is not limited to the current lawsuit by the SEC. Kraken is calling for the authority requested by the SEC to be granted by the U.S. Congress. This demand highlights the need for Congress to engage in serious debate on how this authority should be shared if the federal regulator were to have broad new powers over the U.S. economy.
The demands and criticisms of the cryptocurrency exchange Kraken regarding the SEC lawsuit could resonate widely in the crypto world. It may also have significant impacts on future cryptocurrency regulations.
