2 weeks ago
Kraken’s ineligible team, led by lawyer Michael O’Connor, has criticized the US Securities and Exchange Commission (SEC) for its latest effort to disregard captious defenses raised by the speech successful their ongoing ineligible battle.
On Nov. 6, O’Connor shared a statement connected X, condemning the SEC’s attack arsenic an effort to “avoid discovery” into what helium described arsenic the agency’s flawed and inconsistent policies. He argued that these policies harm the American economy.
O’Connor drew parallels betwixt the SEC’s existent strategy against Kraken and a akin determination unsuccessfully tried successful the Ripple case. He expressed assurance that Kraken’s defenses would withstand scrutiny,
Meanwhile, helium besides raised questions astir the timing of this SEC’s motion, pointing retired that it occurred connected the time “Americans exercised their sovereign close to take their governmental future.”
He further criticized SEC Chair Gary Gensler, stating:
“Gary knows his days are numbered, astatine 75 to beryllium precise. Nonetheless, helium continues to treble down connected his failed policies, present successful explicit defiance of the American people.”
SEC’s motion
On Nov. 5, the SEC filed a motion to disregard Kraken’s “fair notice” and “major questions doctrine” defenses. The bureau argued that this would streamline the find process and forestall the speech from revisiting the aforesaid issues repeatedly.
According to the SEC, Kraken’s claims of regulatory uncertainty are unfounded, and the speech had capable informing astir the imaginable classification of its crypto offerings arsenic securities.
The SEC maintained that national securities laws use to integer assets, noting that:
“Kraken whitethorn kick that nary of the anterior decisions applying Howey progressive its circumstantial facts of crypto assets being re-sold successful a nationalist secondary market, but that is not the benignant of announcement the instrumentality requires. A statute request not supply an nonstop blueprint of what it permits and prohibits.”
The SEC initially filed its suit against Kraken successful November 2023, accusing the speech of operating arsenic an unregistered securities exchange, broker, dealer, and clearing agency. The fiscal regulator claims the crypto trading level has offered these services since September 2018, generating important profits. The tribunal rejected Kraken’s effort to dismiss the lawsuit successful August.
The station Kraken lawyer slams SEC ineligible strategy, draws parallels to Ripple lawsuit misstep appeared archetypal connected CryptoSlate.
English (US) 