- Kraken disputes SEC’s lawsuit accuracy in ongoing legal battle.
- Recent filing questions SEC’s terminology and failure to identify specific investment contracts.
- Kraken maintains its stance against SEC’s accusations, arguing overstepping of regulatory authority.
- Chamber of Digital Commerce supports Kraken’s motion to dismiss, highlighting lack of fraud or consumer harm allegations.
Kraken Disputes SEC’s Case Accuracy
In the ongoing legal feud between Kraken and the US Securities and Exchange Commission (SEC), the crypto exchange has raised concerns regarding the accuracy of the regulator’s case. Despite Kraken’s prior motion to dismiss the lawsuit, the dispute continues to escalate with the recent filing challenging the SEC’s argument.
Questioning SEC’s Terminology
Kraken’s response to the SEC’s April letter highlights discrepancies in the regulator’s language and failure to pinpoint specific investment contracts traded on its platform. The exchange contends that the SEC’s use of terms like “investment concept” and “ecosystem” lacks clarity compared to the precise terms of “investment contract” and “enterprise.” This discrepancy forms a significant part of Kraken’s defense against the allegations of operating as an unregistered securities exchange, broker, dealer, and clearing agency.
Kraken’s Defense and Regulatory Overreach
Kraken has consistently denied the SEC’s claims and opted to contest the lawsuit, arguing that the Commission is overstepping its regulatory authority. The exchange asserts that cryptocurrencies mentioned in the SEC’s complaint should be treated as commodities rather than securities, challenging the basis of the allegations. Additionally, Kraken emphasizes the absence of fraud or consumer harm allegations in the SEC’s case, suggesting a lack of substantial grounds for the accusations leveled against it.
Support from Chamber of Digital Commerce
In a show of solidarity with Kraken, the Chamber of Digital Commerce (CDC) filed an amicus curiae supporting the exchange’s motion to dismiss. The CDC echoes Kraken’s concerns regarding the SEC’s regulatory overreach and the absence of allegations related to fraud or consumer harm. By backing Kraken’s stance, the CDC underscores the importance of clarity and precision in regulatory actions, particularly in the evolving landscape of cryptocurrency exchanges.