Cryptocurrency

<div class="cryptonews">
 <p class="is-style-lead">Cryptocurrency exchange Kraken, facing charges from the U.S. Securities and Exchange Commission (SEC), will fight the regulator and <a rel="noopener noreferrer nofollow" title="respond" href="https://thebittimes.com/tag/respond.html">respond</a> to the complaint in court.</p>
 <p>As the company’s chief legal officer (CLO) Marco Santori told CNBC, the legal battle with the SEC could take several months.</p>
 <blockquote class="wp-block-quote">
  <p>“The SEC alleges that… Kraken is an exchange clearing house and broker-dealer for investment contracts. None of those things exist… there’s no such thing… it’s entirely and hollow made up by the agency, and so we disagree.”</p> <cite>Marco Santori, Kraken CLO</cite>
 </blockquote>
 <p>According to Santori, the regulator’s actions are bad policy. He noted that other countries are creating regulatory frameworks that are “fit for purpose” for digital asset companies.</p>
 <p>In doing so, the cryptocurrency exchange will not avoid regulation, but rather is asking for a legal framework “that makes sense for the crypto ecosystem.”</p>
 <p>According to Santori, Ripple’s victory in court with the SEC in July set a real precedent. During the summer court hearing, the judge admitted that the native token of the ecosystem – XRP – cannot be considered a security. Now this can play into the hands of crypto platforms that are embroiled in proceedings with the regulator, the legal director believes.</p>
 <blockquote class="wp-block-quote">
  <p>“[The U.S. crypto industry] just got [its] very first ruling on these issues in the Ripple case … I think it was it was well reasoned, I think most of it was levelheaded, and we think other courts are going to see it the same way.”</p> <cite>Marco Santori, Kraken CLO</cite>
 </blockquote>
 <p>On Nov. 21, the SEC accused Kraken of mixing its funds with user assets. In addition, the SEC also alleges that the trading platform was never registered to operate as a securities platform, broker, dealer, and clearing agency.</p>
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<p>Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/kraken-to-respond-to-sec-lawsuit-inspired-by-ripple-tbt72283.html">https://thebittimes.com/kraken-to-respond-to-sec-lawsuit-inspired-by-ripple-tbt72283.html</a></p>

Kraken to respond to SEC lawsuit, inspired by Ripple

TheBitTimes

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