🛑🔥The SEC vs Kraken hot lawsuit is heating up 🛑 🔥
Are digital assets not covered by the old securities laws? Kraken is ready for a jury trial to prove it.
Kraken, one of the largest crypto exchanges, is facing pressure from the SEC over allegations that it violated federal securities laws. Like Binance and Coinbase, Kraken is accused of failing to register as a legitimate broker, clearinghouse, or exchange.
The allegations have raised uncertainty for users and crypto industry players around the world. With the threat of tighter regulation, the future of platforms like Kraken could be in jeopardy.
However, Kraken is fighting back! They have filed 18 strong defenses, asserting that current securities laws do not apply to digital assets. Kraken is confident that their business is completely legal under existing rules and is ready to defend themselves in court.
Kraken is seeking a court order and denying the allegations. Kraken argued that digital assets do not meet the legal criteria to be considered securities under U.S. law, citing the Howey Test used to determine whether an asset is an investment contract. Kraken also asserted that the SEC lacks the authority to regulate its activities because the digital assets in question do not share the same characteristics as traditional securities such as stocks or bonds. Kraken also criticized the SEC’s regulatory approach, accusing the agency of overstepping its authority by taking enforcement actions without clear guidance.
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