SEC asks the court to rule on the case against Kraken on an expedited basis after Trump’s victory

What’s new? The US Securities and Exchange Commission (SEC) has filed a motion for an expedited judgment in its lawsuit against crypto exchange Kraken. The move is likely aimed at limiting further disclosure of the SEC’s policies regarding regulation of the crypto sector, which Kraken and others in the industry have repeatedly criticized as inconsistent and unclear.

Source: X.com

What else is known? The motion seeks to overrule objections raised by Kraken. Specifically, the exchange argues that it has not received adequate regulatory guidance from the SEC regarding its operations. Kraken also insists that the SEC should not make important policy decisions without clear direction from Congress.

Earlier, lobbying NGOs Blockchain Association and Crypto Council for Innovation also claimed that the SEC violates the mandate of Congress by regulating cryptocurrency without legislative clarity, thus causing “a brain drain” from the United States.

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The moment the motion was filed provoked discussion in the community. It is sent to the court after Donald Trump’s victory in the US presidential election on November 5.

During the campaign, Trump said he would fire SEC Chairman Gary Gensler immediately after his re-election, under whom the agency has pursued a hostile crypto policy, refusing to clarify operating rules for industry companies and insisting on the need for forced regulation.

Attorney Michael O’Connor believes the SEC’s motion may be an attempt by Gensler’s team to advance its regulatory position before the new administration takes office.

The crypto industry believes that the most likely candidate to replace Gensler as SEC chair is Hester Pierce, known as “Crypto Mama.” She, like Gensler, serves as one of the SEC’s five commissioners.

The SEC accuses Kraken of unregistered offerings of securities in the form of tokens, operating without registration as a broker-dealer, exchange and clearing agency, and commingling customer funds with its own. The regulator alleges that the exchange has made hundreds of millions of dollars since 2018 by illegally facilitating trading in crypto assets that are securities but not properly registered.

Since filing the lawsuit, Kraken has refused to restrict the services it offers. However, in a previous proceeding, at the request of the SEC, it stopped providing staking services in the United States and paid a $30 million fine.