Kraken, the cryptocurrency exchange, has requested a jury trial in response to the U.S. Securities and Exchange Commission's (SEC).
Kraken, the cryptocurrency exchange, has requested a jury trial in response to the U.S. Securities and Exchange Commission's (SEC) allegations of operating an unregistered securities exchange.
This move follows the denial of Kraken's motion to dismiss the lawsuit last month.
In November 2023, the SEC charged Payward Inc. and Payward Ventures Inc., the entities behind Kraken, for allegedly running a digital asset platform without proper registration. The SEC's complaint specifically identifies several tokens—SOL, ADA, ALGO, ATOM, FIL, FLOW, ICP, MANA, MATIC, NEAR, and OMG—as unregistered securities.
Frustrated with the SEC's regulatory approach, Kraken claims that its attempts to collaborate on feasible registration processes have been met with resistance as written in the filing.
In its recent court filing, the exchange reiterated its denial of the SEC's claims, stating that the agency has not clarified which transactions on its platform could be considered investment contracts.
Kraken argues that digital assets lack the characteristics of traditional financial securities, such as stocks and bonds.
Additionally, Kraken has criticized the SEC for pursuing enforcement actions rather than providing clear guidance on regulatory compliance. The exchange has also challenged the terminology used by the SEC, labeling terms like "crypto asset securities" and "Kraken-traded securities" as ambiguous.
This critique reflects a broader concern within the cryptocurrency industry regarding the SEC's use of undefined terms in its regulatory actions.
In a related development, the SEC clarified its position in an amended complaint against Binance, stating that the term "crypto asset securities" should not be interpreted as referring directly to the crypto assets themselves.
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