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CDS Crypto News Kraken Battles SEC: The Exchange Rejects SEC’s Securities Allegations

Crypto News

Kraken Battles SEC: The Exchange Rejects SEC’s Securities Allegations

lectertodd13/09/20241 Mins read113

Kraken Battles Sec The Exchange Rejects Sec'S Securities Allegations

Kraken Battles SEC: The Agent’s Claims of Unregistered Securities Rejected by the Exchange

The centralized cryptocurrency exchange Kraken has reacted to the allegation made by the US Securities and Exchange Commission (SEC) that it broke federal securities laws. According to the SEC, many of the digital assets that the cryptocurrency exchange sells are unregistered securities. Asserting that the aforementioned assets do not fit the legal definition of securities under US law, Kraken vigorously refutes the accusations in the court filing response. Cardano (ADA), Algorand (ALGO), Cosmos (ATOM), and other digital assets traded on Kraken are not investment contracts, according to the exchange’s robust argument.

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Kraken did not violate Sections 5, 15(a) and 17A of the Securities Exchange Act of 1934 because ADA, ALGO, ATOM, FIL, FLOW, ICP, MANA, MATIC, NEAR, OMG, and SOL[…] are not securities or investment contracts.

the filing

Kraken Criticizes SEC Oversight: Digital Assets Don’t Meet Howey Test Criteria

Kraken references the SEC v. W.J. Howey Co. decision, a significant Supreme Court case that establishes the parameters for identifying investment contracts, in the filing. The exchange contends that the SEC did not prove the aforementioned digital assets satisfy the requirements of the Howey test and, as a result, are not subject to the SEC’s jurisdiction. In the filing, Kraken refuted the SEC’s assertions and criticized the agency’s methods of overseeing the cryptocurrency sector. Moreover, the exchange says that the SEC’s interpretation of securities rules regarding digital assets lacks clarity and that the agency has overreached its powers.

The SEC has no authority to regulate Kraken’s digital asset trading platform[…] because the Digital Assets are not securities or investment contracts.

Due to the lack of clarity and fair notice regarding Kraken’s obligations under the law[…] Kraken lacked fair notice that its conduct was prohibited.

the filing

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lectertodd

Lectertodd is 27 years old. She graduated from Çankaya University, Department of Psychology, in 2021. She actively works as a writer, translator, and editor for various websites. Moreover, she loves reading, researching, and learning new things.

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