A California judge rejected Kraken's motion for a temporary appeal, stating in a ruling on Monday that allowing the appeal would only 'delay resolution' of the ongoing lawsuit brought by the U.S. SEC against Kraken.
Kraken filed the motion for a temporary appeal in September (a challenge to a non-final ruling by the judge that allows other aspects of the case to move forward). A month ago, U.S. District Judge William Orrick of the Northern District of California ruled that the SEC had grounds to accuse Kraken of selling cryptocurrencies on its platform that could be considered securities under the Howey test.
In the motion from September, Kraken's lawyers argued that Orrick should allow them to appeal to a higher court on the grounds that Orrick's order 'involves a controlling legal issue with a great deal of disagreement on the matter,' and that 'an immediate appeal... could greatly facilitate the termination of the litigation.'
But Orrick was unmoved, reminding Kraken's lawyers in the ruling on Monday that allowing a motion for a temporary appeal is 'entirely discretionary,' and dismissed their assumption that the appeal could expedite the case proceedings.
In November of last year, the SEC sued Kraken, accusing it of operating as an unregistered securities exchange, broker, dealer, and clearing agency, and sought the forfeiture of illegal profits and civil penalties, as well as a permanent injunction. Kraken denied any wrongdoing and moved to dismiss the case, but that motion was denied in August. (CoinDesk)

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