PANews, November 19 news, according to CoinDesk, after the U.S. Securities and Exchange Commission (SEC) accused the Kraken exchange platform's cryptocurrencies of potentially being considered securities, California Judge William Orrick today dismissed Kraken's motion for a temporary appeal, stating that the appeal would 'only delay the resolution of the case.' Kraken is the second-largest cryptocurrency exchange in the U.S. and had earlier applied for a temporary appeal in September, attempting to challenge Judge Orrick's ruling regarding the validity of the SEC's allegations.
In his ruling on Monday, Judge Orrick emphasized that allowing a temporary appeal is entirely at the discretion of the court, and questioned the argument made by Kraken's lawyers that the appeal could expedite the conclusion of the case. He stated, 'I do not believe that certification will materially advance the ultimate resolution of the litigation. While the SEC's theory of securities violations against Kraken has been reasonably put forth, it can only be determined through the discovery process whether the sales, trades, and exchanges on Kraken truly meet all elements of the Howey test... A complete record is needed to answer these questions. A certification appeal at this stage will only delay resolution.'
The SEC sued Kraken in November last year, claiming that it was not registered as a securities exchange, broker, dealer, and clearing agency, and sought compensation and civil penalties from Kraken, while also requesting a permanent injunction. Kraken denied any wrongdoing and attempted to dismiss the case, but that motion was denied in August.