# Crypto exchange Kraken faces SEC lawsuit challenge 🚀

A federal judge rejected Kraken's application to dismiss the SEC lawsuit, which means Kraken must face the SEC's allegations. Judge William H. Orrick said in the San Francisco federal court that the SEC reasonably believed that some of Kraken's crypto transactions constituted investment contracts and were therefore subject to securities laws.

Kraken argued that its platform transactions did not involve securities and did not require registration. The SEC filed a lawsuit last November, accusing Kraken of operating as an unregistered securities exchange.

What do you think? Share your views in the comments section!