tl;dr
Kraken, a prominent crypto exchange, has filed a motion in federal district court seeking the dismissal of the SEC’s case filed in November, arguing that none of the assets in the SEC’s complaint constitute ‘investment contracts.’ The motion challenges the SEC's claims and aligns with the Crypto Fre...
Kraken, a prominent crypto exchange, has filed a motion in federal district court seeking the dismissal of the SEC’s case filed in November, arguing that none of the assets in the SEC’s complaint constitute ‘investment contracts.’ The motion challenges the SEC's claims and aligns with the Crypto Freedom Alliance of Texas (CFAT), which has also filed a lawsuit against the SEC over its definition of regulated securities. Kraken's argument questions the expansive new theory put forth by the SEC and calls for the authority being sought by the regulator to be placed in the U.S. Congress. This is a developing story with potential implications for the regulation of crypto assets and commodities. Crypto exchange Kraken filed a motion in federal district court late Thursday, asking that the court dismiss the SEC’s case filed in November.
"The law is clear," a Kraken spokesperson told Decrypt. “None of the assets in the SEC’s complaint constitute ‘investment contracts,’ and Kraken is not a securities exchange." The motion, filed in Northern California District Court, picks apart the SEC's most recent claims—which came nine months after the agency and Kraken reached a settlement over prior allegations related to crypto staking.
"The SEC’s case rests on an expansive new theory that would effectively ‘securitize’ a broad range of ordinary assets and commodities,” the Kraken spokesperson said, saying the SEC is declaring that “any commercial artifact that can rise or fall in value could be an investment contract.” Should the SEC’s broadened scope stand, the federal regulator would “commandeer expansive new authority over the U.S. economy just as Congress is debating how that authority should be allocated among federal agencies,” the Kraken spokesperson said. Kraken is calling for the authority being sought by the SEC to be placed in the U.S. Congress. This is a developing story and will be updated as details emerge.
*This article was taken from (https://decrypt.co/218673/kraken-motion-to-dismiss-sec-case-securities)*
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