13.8 C
Amsterdam
29 May 2024
PumpMoonshot
Image default
Bitcoin

Kraken Asks Court To Dismiss SEC Claims Alleging the Crypto Exchange Operated As Unregistered Securities Broker

The crypto exchange Kraken is pushing back against claims made by the U.S. Securities and Exchange Commission (SEC).

In November, the SEC charged Kraken with operating its crypto trading platform as an unregistered securities exchange, broker, dealer and clearing agency.

Earlier this year, Kraken filed in US District Court to dismiss those charges, and the company provided additional arguments in support of that motion on Thursday.

The exchange’s lawyers argue that the SEC’s argument would widen the definition of investment contracts and expand the regulator’s jurisdiction outside of its delegated responsibility.

“When pressed to identify the securities in question, the SEC points to things that Kraken does not and could not trade, broker, or settle. Instead of identifying an investment contract, the SEC asks the Court to accept an ‘investment concept’ as sufficient. Instead of identifying an enterprise, the SEC asks the Court to accept an ‘ecosystem.’ But Kraken does not trade, broker, or settle ‘concepts’ or ‘ecosystems.’

The SEC never plainly alleges that what actually is traded, brokered, and settled on Kraken is itself an investment contract. This failure spotlights the fundamental problem with the SEC’s case. The only things that are alleged to be traded, brokered, or settled on Kraken are digital assets – which are not investment contracts.”

The SEC has argued that Kraken hawked 11 different “crypto asset securities” on its platform and was required by law to register with the regulator.

“The Supreme Court’s decision in SEC v. W.J. Howey Co. compels a contrary conclusion. The Howey Court defined an ‘investment contract’ under the Securities Act and Exchange Act to mean ‘a contract, transaction or scheme whereby a person invests his money in a common enterprise and is led to expect profits solely from the efforts of the promoter or a third party.’”

Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox



Check Price Action



Follow us on X, Facebook and Telegram



Surf The Daily Hodl Mix


&nbsp

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Generated Image: Midjourney

The post Kraken Asks Court To Dismiss SEC Claims Alleging the Crypto Exchange Operated As Unregistered Securities Broker appeared first on The Daily Hodl.

Related posts

Bitcoin Difficulty Back Above 20T, Here’s What This Means

PumpMoonshot

Bitcoin: A break above 45800 is a strong buy signal

PumpMoonshot

No moon for Bitcoin is 2019 – Anthony Pompliano

PumpMoonshot
Verified by MonsterInsights