SEC and Kraken extend the objection deadline to March 2025, focusing on resolving discovery disputes.
Kraken revises document requests on Bitcoin and Ether to comply with Judge Illman’s earlier order.
The case could shape crypto regulation, spotlighting debates on Bitcoin and Ether’s classification under securities laws.
The U.S. Securities and Exchange Commission (SEC) and crypto exchange Kraken submitted a joint stipulation and proposed order. This step follows Kraken’s plan to challenge a prior court order favoring the SEC.
https://twitter.com/bpaynews/status/1871747825177964992 Details of the Discovery Dispute
Court filings dated December 23 indicate that Kraken, represented by Payward Inc. and Payward Ventures, and the SEC addressed ongoing disputes over discovery. The dispute concerns Kraken’s requests for three document categories.
These include SEC’s public statements and testimony about Bitcoin and Ether, internal trading policies on digital assets, and documents concerning digital asset regulation.
Earlier, Magistrate Judge Robert M. Illman denied Kraken's request to compel these documents' production. The court had referred all discovery disputes in this case to Judge Illman in November. Kraken, however, contends that the requested documents are essential for their case.
Adjusted Requests and Deadline Extensions
Under Federal Rule of Civil Procedure 72(a), Kraken has until December 30 to file objections to Judge Illman’s order. Instead of filing objections, Kraken plans to revise and narrow its document production requests.
Both parties have agreed to extend the deadline for objections until March 31, 2025. This extension allows further discussion and potential resolution.
Kraken High-Profile Legal Representation
Matthew C. Solomon, a partner at Clearly Gottlieb, is representing Kraken in this case. He previously defended Ripple CEO Brad Garlinghouse and has a track record of high-profile legal victories. Kraken's legal team argues that the requested documents are critical to addressing Bitcoin’s and Ether’s exclusion from the SEC complaint.
The case highlights industry-wide concerns about regulatory clarity for cryptocurrencies. Kraken and other market players argue that past SEC statements, such as those made by former official William Hinman, are relevant. These statements are tied to defining the status of Bitcoin and Ether under federal securities laws.
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