- On October 15th, a new trial date will be suggested, replacing the original January 14th date.
- Notably, the exchange has maintained that the SEC should not regulate it.
Kraken, a prominent cryptocurrency exchange, is under increasing legal pressure after a US court rejected its request to dismiss the SEC lawsuit. The most recent court filing states that US District Judge William H. Orrick rejected Kraken’s request and directed the exchange to respond to the “complaint” within twenty days. This adjustment occurs in the wake of the exchange’s reported loss in court proceedings against ASIC (the Australian Securities and Investments Commission).
The decision by District Judge William H. Orrick supports the position of the US SEC about Kraken’s potential role in facilitating unregistered securities trades. Some of the crypto transactions on Kraken’s platform may be seen as investment contracts. According to a recent court filing in which the judge said that the SEC has reasonably claimed. The court did say, however, that it is subject to securities regulations.
Protracted Legal Struggle
Notably, the exchange has maintained that the SEC should not regulate it since its activities do not include securities. The court’s rejection of the cryptocurrency exchange’s request to dismiss the lawsuit, however, means that the exchange may have a protracted legal struggle on its hands.
Since becoming chair of the SEC in 2021, Gary Gensler has maintained that the majority of digital tokens should be regulated by the agency since they are securities. Binance, Coinbase, and Uniswap are among the biggest cryptocurrency companies in the world that have been sued by the securities watchdog while he was in charge.
Moreover, within 20 days, Kraken must reply to the complaint. Also, on October 15th, a new trial date will be suggested, replacing the original January 14th date.
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