Kraken lawmakers opposed the SEC’s charges and provided the facts to dismiss the lawsuit.
Kraken is an averagely popular American cryptocurrency exchange. This cryptocurrency company was the first to be listed on the Bloomberg terminal. In January 2023, Kraken was sued by the U.S. Securities and Exchange Commission (SEC) for its cryptocurrency staking service. The company later settled the case with a $30 million fine and ended its cryptocurrency staking services for U.S. customers.
In November 2023, the U.S. SEC filed a lawsuit against Kraken, accusing it of not registering as a broker, clearinghouse or exchange and accusing the company of mixing customer funds with corporate funds.
Recently, Kraken responded to the SEC’s lawsuit by filing a motion with the court to dismiss the SEC’s charges.
According to Kraken, all cryptocurrency assets traded on the Kraken platform should be treated as commodity assets and not as securities.
Kraken also argued that none of its listed cryptocurrency assets are considered security tokens by the SEC and that the Howey test is not a sufficient tool to identify the exact nature of a cryptocurrency.
Kraken vs Binance
Kraken and Binance are known to be each other’s biggest rivals. Kraken executives are ready to criticize Binance cryptocurrency exchange.
Just a few months ago, Kraken’s Jesse Powel supported the SEC agency in its lawsuit against Binance and said the move was the best decision against illegal activities. Indirectly, he said that Binance illegally provided cryptocurrency services in the United States and that this was the reason for several enforcement actions.
Now, all major cryptocurrency exchanges – Kraken, Binance and Coinbase – are opposing the SEC’s blind enforcement actions under a single umbrella.
Also Read: Nigeria Bans Binance and Other Major Cryptocurrency Companies