Kraken’s Bid to Dismiss SEC Lawsuit Denied by US Judge
Kraken is facing escalating legal challenges as a US judge has rejected its bid to dismiss a lawsuit from the SEC.
The ruling from US District Judge William H. Orrick requires Kraken to address the SEC’s claims within 20 days. This development follows a recent defeat for Kraken in Australia, where a court found its operator, Bit Trade Pty, non-compliant with financial regulations.
The SEC argues that Kraken may have facilitated transactions involving unregistered securities, a claim the court has found credible enough to proceed. Kraken had previously argued that its operations should not fall under SEC jurisdiction, but this latest ruling suggests a prolonged legal battle ahead.
In Australia, ASIC had sued Bit Trade in September 2023 for failing to meet legal obligations related to its trading products. The Australian court’s decision adds to Kraken’s regulatory pressures.
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The SEC’s stance under Chair Gary Gensler, which views many cryptocurrencies as securities, has intensified scrutiny on crypto exchanges. The outcome of this case could impact other exchanges and potentially shape future regulatory approaches.
Despite these issues, Kraken’s Chief Legal Officer, Marco Santori, expressed optimism, calling the ruling a partial win and stressing the need for clearer regulations from lawmakers. Kraken remains committed to defending its position as the legal process unfolds.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
