NEAR Protocol

United

Algorand

Polygon

<div class="coinjournal">
 <ul>
  <li>SEC has filed a lawsuit against Kraken.</li>
  <li>The SEC is alleging that the exchange has been conducting unregistered operations.</li>
  <li>Kraken is also accused of fund commingling.</li>
 </ul>
 <p>In a recent development, the US Securities and Exchange Commission (SEC) has filed a lawsuit against cryptocurrency exchange Kraken, adding it to the list of platforms facing accusations of operating without proper registration as securities businesses in the United States.</p>
 <p>The <a rel="noopener noreferrer nofollow" title="SEC" href="https://thebittimes.com/tag/sec.html">SEC</a> alleges that <a rel="noopener noreferrer nofollow" title="Kraken" href="https://thebittimes.com/tag/kraken.html">Kraken</a> engaged in <a rel="noopener noreferrer nofollow" title="unregistered" href="https://thebittimes.com/tag/unregistered.html">unregistered</a> activities, operating as an <a rel="noopener noreferrer nofollow" title="unregistered" href="https://thebittimes.com/tag/unregistered.html">unregistered</a> broker, clearing agency, and dealer. The federal regulator claims that <a rel="noopener noreferrer nofollow" title="Kraken" href="https://thebittimes.com/tag/kraken.html">Kraken</a> traded numerous tokens deemed <a rel="noopener noreferrer nofollow" title="SEC" href="https://thebittimes.com/tag/sec.html">SEC</a>urities without complying with federal <a rel="noopener noreferrer nofollow" title="SEC" href="https://thebittimes.com/tag/sec.html">SEC</a>urities laws.</p>
 <p>The lawsuit identifies specific tokens, including Algorand (ALGO), Polygon (MATIC), and NEAR Protocol (NEAR), as unregistered securities that Kraken traded. The SEC contends that Kraken played a direct role in promoting these tokens to the investing public.</p>
 <h2 id="fund-mixing">Fund Mixing</h2>
 <p>Notably, the SEC points out that Kraken commingled up to $33 billion in customer cryptocurrency with its own corporate assets, creating what it terms a “significant risk.”</p>
 <p>The regulator asserts that <a rel="noopener noreferrer nofollow" title="Kraken" href="https://thebittimes.com/tag/kraken.html">Kraken</a> also mixed over $5 billion of its customers’ cash with its own, even using customer funds for operational expenses directly.</p>
 <h2 id="kraken-advocates-for-regulatory-clarity-in-response">Kraken advocates for regulatory clarity in response</h2>
 <p>In response to the SEC’s allegations, Kraken issued a statement asserting its disagreement with the complaint. The cryptocurrency exchange defends its position, emphasizing that it does not list securities and expressing disappointment in the SEC’s approach to regulation.</p>
 <p>Kraken advocates for effective US market regulation tailored to the unique risks and benefits presented by cryptocurrencies. The exchange suggests that Congressional action is necessary to address the current lack of regulatory clarity in the U.S., criticizing the SEC’s regulatory approach as harmful to consumers and detrimental to innovation in the cryptocurrency space.</p>
 <p>As the legal proceedings unfold, Kraken, Coinbase, and Binance find themselves in a shared spotlight, navigating the regulatory landscape of the cryptocurrency industry amid increasing scrutiny from the SEC.</p>
</div>
<p>Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/sec-charges-kraken-with-unregistered-operations-and-fund-mixing-tbt71488.html">https://thebittimes.com/sec-charges-kraken-with-unregistered-operations-and-fund-mixing-tbt71488.html</a></p>

SEC charges Kraken with unregistered operations and fund mixing

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TheBitTimes

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