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<p>The post <a href="https://coinpedia.org/news/kraken-founder-jesse-powell-defends-against-sec-lawsuit/">Kraken Founder Defends Against SEC Lawsuit as Firm Gears Up for Battle</a> appeared first on <a href="https://coinpedia.org">Coinpedia Fintech News</a></p> 
<p><a href="https://coinpedia.org/news/former-kraken-ceo-jesse-powells-home-raided-by-fbi-in-high-stakes-investigation/">Jesse Powell</a>, the founder of Kraken, has taken a bold stance against the <a href="https://coinpedia.org/news/sec-charges-kraken-exchange-for-unregistered-operations/">U.S. Securities and Exchange Commission (SEC)</a>. His reaction comes in response to the lawsuit filed by the SEC against Kraken, accusing the crypto exchange of operating without the necessary securities registrations in the United States.</p> 
<p>Needless to say, he isn’t going to take the allegations sitting down. Here’s the latest update! </p> 
<h2 class="wp-block-heading" id="h-powell-s-perspective"><strong>Powell’s Perspective</strong></h2> 
<p>Jesse Powell isn’t happy with the SEC’s latest move. He’s frustrated, pointing out the déjà vu of Kraken’s $30 million settlement with the SEC. Powell suggests the SEC’s actions feel like déjà vu, almost like extortion due to high legal costs.</p> 
<p>Powell strongly denies the SEC’s claims, emphasizing that Kraken’s operations are clean – no fraud, market manipulation, or mishandling of customer funds.</p> 
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   <p lang="en" dir="ltr">USA's top decel is back with another assault on America. The masochists haven't been happy with the beatings they've been taking in NY and are shopping for a different flavor of RegDom in CA. I thought we settled all their concerns for $30m in Feb. Now they're back for seconds? <a href="https://t.co/SkfPJyneUz">https://t.co/SkfPJyneUz</a></p>— Jesse Powell (@jespow) <a href="https://twitter.com/jespow/status/1726791124650713134?ref_src=twsrc%5Etfw">November 21, 2023</a>
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<p>Kraken’s defense argues that the digital assets it supports don’t count as “investment contracts” and don’t need special securities licenses. Powell backs this up with a precedent where a Federal Court rejected a similar SEC theory, saying the current allegations are based on a flawed legal basis.</p> 
<p>Also Read: <a href="https://coinpedia.org/news/john-e-deaton-slams-secs-gary-gensler-after-krakens-30m-sec-settlement/">John Deaton Slams SEC’s “Despicable” $30M Crackdown on Kraken</a></p> 
<p><strong>Why is the SEC gunning for crypto?</strong></p> 
<p>Kraken’s legal battle isn’t alone; the SEC is going after big players like Coinbase and Binance. The SEC claims these platforms, including Kraken, operated as unregistered exchanges, brokers, and clearinghouses. The lawsuit aims to stop Kraken from being an unregistered exchange and wants restitution for what the SEC calls “ill-gotten gains.”</p> 
<h2 class="wp-block-heading" id="h-kraken-defies-the-sec"><strong>Kraken Defies the SEC </strong></h2> 
<p>In an official statement, <a href="https://coinpedia.org/news/kraken-exchange-responds-to-secs-allegations-heres-what-the-exchange-says/">Kraken</a> denies the SEC’s claims and promises a strong defense in court. Kraken challenges the SEC’s view of digital assets as “investment contracts,” saying its business model doesn’t need special securities licenses.</p> 
<p>Kraken also points out the SEC’s lack of clear rules for digital asset transactions. The absence of specific laws or rules for digital asset trades, according to Kraken, shows the SEC demands compliance without clear guidelines. Despite legal challenges, Kraken stands firm, ready to defend its innovative platform.</p> 
<p>Also Read: <a href="https://coinpedia.org/news/u-s-senator-criticizes-secs-approach-to-kraken-case-cites-customer-impact/">U.S. Senator Slams SEC’s Case Against Kraken, Cites Customer Impact</a></p>

Kraken Founder Defends Against SEC Lawsuit as Firm Gears Up for Battle

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