Kraken has demanded a jury trial in SEC lawsuit over trading in unregistered securities

The company completely rejects the charges made by the regulator

13.09.2024 - 13:05

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2 min

What’s new? US-based centralized crypto exchange (CEX) Kraken has requested a jury trial in a case brought against it by the US Securities and Exchange Commission (SEC). Last November, the SEC accused Kraken of operating without registration, commingling customer funds with its own, and offering unregistered securities in the form of tokens. Earlier, the regulator filed similar lawsuits against crypto exchanges Binance and Coinbase.

Material by CoinDesk

What else is known? After filing the lawsuit, Kraken denied the charges and refused to restrict products and services for customers in the United States, stating its readiness to defend its interests in court. Meanwhile, last February, Kraken was forced to pay a $30 million fine and stop providing staking services in the country due to SEC claims.

In a new appeal to the court, Kraken also denied the charges and said that it did not register with the SEC because it was never required to do so. The company emphasized that it is not an exchange, broker-dealer, or clearing agency as defined under the Exchange Act.

The defendants also argue that the SEC has no authority to regulate Kraken. Digital assets cannot themselves be investment contracts because they do not carry any of the rights and obligations associated with stocks, bonds, or any other financial assets that are subject to SEC regulation.

Kraken has challenged the SEC’s arguments in a securities law violation proceeding

According to the exchange’s representatives, the officials incorrectly formulate arguments

In February, Kraken launched Kraken Institutional, a spot and derivatives trading platform, and in April it bought US-licensed crypto broker TradeStation Crypto.

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