**News Flash: Court Denies Kraken’s Motion to Dismiss SEC Lawsuit**

A U.S. federal court has denied Kraken's attempt to dismiss an SEC lawsuit accusing the crypto exchange of operating an unregistered securities exchange. The court's Aug. 23 ruling supports the SEC's claim that some of Kraken's crypto transactions may qualify as securities, thus falling under SEC regulations.

The SEC initially charged Kraken in November, arguing that the platform's failure to register deprived investors of key protections. This ruling adds to the ongoing debate over which cryptocurrencies are considered securities under U.S. law.

Coinbase faces a similar SEC battle over its staking products, and the SEC recently rejected Cboe Global Markets' application to list Solana ETFs, citing Solana as a security.

The court emphasized that the broader context of how virtual assets are marketed and sold matters more than formal investment contracts. This decision only confirms the plausibility of the SEC's claims, with a final ruling still pending.