2 months ago
Kraken has requested a assemblage proceedings successful effect to the US Securities and Exchange Commission’s (SEC) lawsuit, according to a Sept. 12 tribunal filing.
The determination comes aft a national justice rejected Kraken’s bid to disregard the case, which centers connected claims that the level operated an unregistered securities exchange.
Kraken’s defense
In its filing, Kraken denied immoderate amerciable enactment and criticized the SEC’s attack to the crypto industry.
The speech highlighted its attempts to prosecute with the regulator, which was met with resistance. It stated:
“Kraken has tried to enactment with the SEC to marque registration feasible. But the industry’s efforts person been stonewalled astatine each step, arsenic the SEC has alternatively chosen to prosecute a strategy of warring with its sister regulators for enforcement authorization its Chair admitted it did not have.”
Further, Kraken claims it was unaware of which integer assets the SEC considered “investment contracts” until the suit was filed. The regulator labeled these integer assets traded connected the crypto level arsenic securities: ADA, ALGO, ATOM, FIL, FLOW, ICP, MANA, MATIC, NEAR, OMG, and SOL.
Kraken besides disputed the SEC’s word “crypto plus securities,” arguing that the courts person already rejected it. It stated:
“The SEC has pointed to nary transactions wherever concern contracts were allegedly formed connected Kraken. The integer assets themselves cannot beryllium the concern contracts due to the fact that they transportation nary of the rights and obligations of a stock of stock, a bond, oregon immoderate different fiscal plus that Congress has said is taxable to SEC regulation.”
As a result, Kraken firmly denied that it engaged successful immoderate amerciable activity.
Challenges SEC’s authority
Kraken besides questioned the SEC’s authorization to modulate its concern nether definite sections of the Securities Exchange Act. The speech argued that integer assets bash not suffice arsenic securities oregon concern contracts, and therefore, trading these assets connected Kraken does not interruption the Exchange Act.
Additionally, Kraken claimed that the SEC failed to supply capable announcement that its actions were unlawful, violating the exchange’s owed process rights.
Its ineligible squad argued:
“Due to the deficiency of clarity and just announcement regarding Kraken’s obligations nether the law, successful summation to the deficiency of clarity and just announcement regarding Plaintiff’s mentation of the law, Kraken lacked just announcement that its behaviour was prohibited.”
The station Kraken challenges SEC’s authority, demands assemblage proceedings implicit crypto plus disputes appeared archetypal connected CryptoSlate.
English (US) 