SEC and Kraken agreed to extend the discovery objection deadline, allowing time to resolve disputes over Bitcoin and Ether documents.
Kraken revised document requests to comply with Judge Illman’s order, focusing on SEC’s statements and policies on digital assets.
The case underscores industry concerns about regulatory clarity, spotlighting Bitcoin and Ether’s classification under securities laws.
The U.S. Securities and Exchange Commission (SEC) and cryptocurrency exchange Kraken have agreed to extend the deadline for filing objections in their ongoing discovery dispute. A joint stipulation and proposed order, submitted by both parties, requests that the deadline be moved to March 31, 2025. This development follows Kraken’s intent to challenge a prior court ruling that sided with the SEC.
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Court filings from December 23 reveal that the SEC and Kraken are at odds over the production of three specific document categories. Kraken seeks access to the SEC’s public statements and testimony about Bitcoin and Ether, internal policies related to digital asset trading, and regulatory documents concerning cryptocurrencies.
Previously, Magistrate Judge Robert M. Illman denied Kraken’s request to compel the production of these documents. The court had assigned Judge Illman to oversee all discovery disputes in this case. Despite the denial, Kraken maintains that these documents are essential for its legal arguments.
Kraken Revises Requests for Compliance
Kraken, represented by Payward Inc. and Payward Ventures, plans to revise its document requests to align with Judge Illman’s earlier ruling. The company has until December 30 to file objections under Federal Rule of Civil Procedure 72(a). Instead, it intends to narrow its requests to facilitate further discussions with the SEC.
This adjustment aims to address concerns raised by the court while preserving Kraken’s ability to argue its case effectively. By extending the deadline, both parties are focusing on resolving the dispute without immediate judicial intervention.
High-Profile Legal Representation for Kraken
Kraken’s legal team, led by Matthew C. Solomon of Cleary Gottlieb, brings considerable experience to the case. Solomon, known for representing Ripple CEO Brad Garlinghouse in a similar SEC case, is advocating for access to documents that could clarify Bitcoin’s and Ether’s exclusion from the SEC’s regulatory framework.
This case highlights the ongoing debate over regulatory clarity for cryptocurrencies, particularly Bitcoin and Ether. Industry stakeholders argue that statements from past SEC officials, such as William Hinman, are crucial for defining these assets under securities laws.
Consequently, the case has broader implications for how digital assets are classified and regulated in the United States. Both Kraken and the SEC are navigating uncharted legal territory, with potential impacts on the entire cryptocurrency market.
