“New SEC Complaint Against Kraken”
The crypto precedent
Earlier this year, the SEC forced Kraken to close its staking service over allegations of providing an unregistered security investment service. The SEC argued that the service was an unregistered security. Kraken shut down rather than challenge the agency. However, Ripple’s victory against the SEC has led to a change in assumptions regarding cryptocurrencies and crypto services as securities.
The new complaint
Recently, the SEC sued Kraken again, this time accusing it of operating as an unregistered stock exchange. The agency alleges that the offering of unlicensed services is illegal. The surprising aspect is that only Kraken is being accused, despite other US exchanges offering similar services. However, it may be only a matter of time before the SEC targets other exchanges.
Charges against Kraken
Kraken is accused of failing to register with a non-existent registry in the US and operating as an unrecognized operator of unregulated asset exchanges. The SEC’s effectiveness has been widely questioned due to several court defeats. For these reasons, Kraken is determined to fight back, expressing disagreement with the SEC’s new charges and intending to defend its position in court.
The legal battle
Kraken’s legal team vows to challenge the SEC in court. They are confident that the complaint will not impact the exchange’s operations. Additionally, they emphasize that the complaint does not accuse them of fraud, market manipulation, or security compromise. They also argue that the SEC’s position is incorrect and hope that Congress will provide clarity by passing a bill.
The election campaign
The SEC’s initiative against Kraken may be influenced by the upcoming US elections. The current Democratic government has expressed negative views on cryptocurrencies. SEC Chairman Gary Gensler’s stance may be aimed at appeasing the Democratic electorate. This initiative will incur costs that will ultimately be borne by companies like Kraken and American taxpayers.
By
By
By
By