ChainCatcher reported that Judge Orrick, in the hearing on Kraken’s motion to dismiss against the U.S. Securities and Exchange Commission (SEC), said at the end of the hearing that he “will take some time to study things carefully and does not want to hear any ideas about “major issues of principle”.”
At the start of the hearing, after reading two briefs, Orrick said he agreed with the SEC’s argument and asked Kraken’s lawyers if he could change his mind.
In conversations with lawyers who have listened to today’s proceedings, industry insiders said it’s reasonable to assume that Orrick will allow the matter to proceed to the investigative stage. As with the Coinbase case, the bar for the SEC to prove they have at least some plausible legal basis to proceed with their case against Kraken is very low.
