The judge in the Kraken case rejects the SEC’s broad classification of crypto assets as securities.
The ruling aligns with Judge Torres’ decision in SEC v. Ripple, emphasizing the context of asset sales.
Legal experts and the crypto community criticize the SEC’s approach and call for regulatory reform.
A federal judge presiding over the SEC’s case against Kraken has echoed the reasoning in the SEC v. Ripple decision, emphasizing the distinction between the crypto assets themselves and the context of their sales. The judge warned the SEC against conflating these issues, highlighting a broader judicial trend in crypto regulation.
Specifically, the judge clarified that they wouldn’t treat the crypto assets themselves as securities. Instead, the focus would be on whether their sales or exchanges on Kraken’s platform constituted investment contracts.
This approach aligns with Judge Analisa Torres’ reasoning in the SEC v. Ripple case. In her summary judgment, Judge Torres distinguished between the XRP token and the specific circumstances under which Ripple sold it. The ruling emphasized that Ripple’s programmatic sales to retail investors didn’t qualify as sec…
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