SEC Sues Kraken for Operating Unregistered Crypto Trading Platform
The US Securities and Exchange Commission has turned its attention to Kraken, a US-based crypto exchange, in its ongoing regulatory crackdown. The SEC has filed a lawsuit against Kraken, alleging that it has operated an unregistered trading platform for cryptocurrency assets, generating substantial fees and trading revenue without adhering to securities laws designed to protect investors.
SEC Targets Kraken In Ongoing Crypto Crackdown
The complaint against Payward Inc. and Payward Ventures Inc., the entities behind Kraken, claims that Kraken has violated securities laws by failing to register as an exchange, clearing agency, and broker-dealer. This comes after a legal case with the SEC in February 2023, where Kraken agreed to discontinue an unregistered offering and sale of a crypto asset staking-as-a-service program.
Collins Belton, a pro-crypto lawyer, believes that the recent SEC case against Kraken echoes similar allegations made against Coinbase. The SEC claims that certain assets traded on Kraken are securities, thus alleging that Kraken operates an unregistered exchange.
Crypto Exchange Battle
The lawsuit against Kraken adds to the regulatory pressures faced by major cryptocurrency exchanges like Coinbase and Binance. The case also raises concerns about the exchange’s internal practices and the potential impact on the broader crypto industry and future regulatory approaches.
As of now, Kraken has not officially responded to the SEC’s lawsuit, leaving many questions about the case’s impact on the industry.
Hot Take: Kraken’s Legal Battle with the SEC
The lawsuit filed against Kraken by the SEC is just the latest legal battle in the ongoing effort to regulate the crypto industry in the US. The outcome of this case will certainly have implications for how exchanges operate and how regulators approach their oversight of the industry. The verdict will undoubtedly be eagerly anticipated by everyone with an interest in the future of crypto trading in the US. Kraken’s response and the SEC’s approach to the case will be closely watched by crypto enthusiasts, market analysts, and SEC-watchers alike.
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