Home > web3.0 > body text

Kraken vs. SEC: Crypto Exchange Demands Jury Trial in Unregistered Securities Case

WBOY
Release: 2024-09-13 18:01:16
Original
1057 people have browsed it

The legal battle between Kraken, a major crypto exchange, and the SEC does not seem to be ending anytime soon.

Kraken vs. SEC: Crypto Exchange Demands Jury Trial in Unregistered Securities Case

Major crypto exchange Kraken is facing a legal battle with the SEC that does not seem to be ending anytime soon. The crypto exchange has demanded a jury trial in the case filed against it by the SEC.

Earlier this year, a California judge allowed the SEC’s lawsuit against Kraken to proceed. Just like Kraken, other crypto exchanges like Binance and Coinbase have also faced similar allegations of violating federal securities laws and received the same verdicts. Let’s find out the current developments in this case.

Allegations on Kraken

The SEC first sued Kraken in November last year. The lawsuit, filed in the Northern District of California, accused teh crypto exchange of violating federal securities laws. The SEC wants to permanently stop the exchange from breaking these laws and demands the crypto exchange return its “ill-gotten gains” along with other civil penalties. It also identified 11 tokens like ADA, SOL, and MATIC, as unregistered securities.

Kraken’s Defense

Kraken has denied all accusations made by the SEC in its latest court filing. It responded to every allegation and presented 18 defenses. Kraken’s main argument revolves around its interpretation of U.S. securities laws. According to the exchange, the Securities Act and the Exchange Act do not mention digital assets. The crypto exchange further stated that it never registered with the SEC because it wasn’t legally required to do so.

Legal Standpoint

Kraken argued that the SEC does not have the power to regulate it. The firm claimed that the SEC should not regulate digital assets as they are not “investment contracts”. Kraken admitted to listing more than 220 crypto assets globally and providing services such as margin trading and an over-the-counter trading desk. The exchange says these features do not classify it as a securities exchange or broker.

Claims Against the SEC

Kraken has also accused the SEC of acting unfairly, stating it took action against the crypto exchange without proper notice or process. The exchange suggested that the SEC’s lawsuit violated its First Amendment rights.

This case will now proceed to trial, with Kraken insisting on defending its platform and business model. The outcome could have significant implications for the future of crypto regulation in the U.S.

The above is the detailed content of Kraken vs. SEC: Crypto Exchange Demands Jury Trial in Unregistered Securities Case. For more information, please follow other related articles on the PHP Chinese website!

source:php.cn
Statement of this Website
The content of this article is voluntarily contributed by netizens, and the copyright belongs to the original author. This site does not assume corresponding legal responsibility. If you find any content suspected of plagiarism or infringement, please contact admin@php.cn
Popular Tutorials
More>
Latest Downloads
More>
Web Effects
Website Source Code
Website Materials
Front End Template
About us Disclaimer Sitemap
php.cn:Public welfare online PHP training,Help PHP learners grow quickly!